USD/CAD rises to the highest since Aug 2004
Falling oil prices and a strong US dollar finally broke the spirit of USD/CAD sellers protecting the crisis high of 1.3065.
A big hit as North American traders got to their desks. As 1.3050 broke, it began to run stops and that cascaded to 1.3103. Soft manufacturing data in China and Europe has stoked fresh concerns about the global economy.
Technically, there is very little to restrain the gains. If the pair can close above 1.3065 today, then an initial target is 1.3463, which is the 61.8% retracement of the 2002-2007 decline.
USDCAD monthly
I made the case for USD/CAD longs yesterday as oil continued to break down. Earlier in the week, I wrote about why USD/CAD could rise much further.
