Flows responsible
Around the 25th of the month, we usually get Canadian oil settlement flows and that could be giving the loonie an extra jolt today. Earlier there was a tailwind from falling oil prices but that's disappeared with crude up 27-cents to $42.60.
With the 60-pip gain today, the 1.3135 level is looking more like a double bottom but it will still take a rise above Thursday's high of 1.32244 to confirm it. If so (especially with a close above there), the measured target would be 1.3360 and a challenge of the Aug 6 high just below 1.3400 can't be ruled out.
