New highs for the USDCAD on Fitch downgrade

Technical Analysis

Author: Greg Michalowski | usdcad

Tests swing levels going back to June 16

The USDCAD has moved to new session highs after the news that Fitch downgraded Canada debt to AA+. The outlook is stable.

Tests swing levels going back to June 16_
Looking at the hourly chart, the pair is testing the swing area at 1.3615 – 23 area. A move above that level opens up the door for further upside potential.  For traders, the close risk is the broken trend line at 1.3595 currently. A move below that level – and staying below – could see buyers on the news give up on the trade.

AAA is the highest of ratings. AA+ is the next highest. It is a downgrade, but the risks are minimal of a default.  
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