March 2009 high at 1.3063
The USDCAD is approaching the March 2009 high price at 1.3063. THe high for the day is at 1.3044.
In July 2014, a swing low came in at 1.06195. That is a 22.8% decline over the last year. That hurts for US exports but be a help to Canada manufacturers. The problem is the sharp fall in oil prices which hurts the Canadian economy.
The pair is getting a boost to new highs on the better US existing homes data. The price is within 15 or so pips of that 6 year high. Expect sellers, just because risk can be defined and limited against the level will stops on any momentum move above.
On a move lower, the sellers still have to prove they have some might behind any correction. Looking at the 5 minute chart, the 1.3011-21 will be eyed as close support. This is the 38.2-50% of the last trend move higher today (see chart below). Get below that area, and there could be some further profit taking.
