Stalking USD/CAD as it Tests 1.10

• Weekly: One thing that should be noted about the USD/CAD is that it has been in a ranging mode. Yesterday’s USD/CAD post noted topping action and a possible decline towards 0.99, and possibly towards 0.96.
• The environment is not right for this move as commodities continue to be pressured. Oil is off 4% and gold is remaining flat. Equities markets were down in the broad global markets especially in European countires in debt troubles. The USD still has a safe haven appeal that is benefiting along side with the Japanese yen.
• I will keep my eye on USD/CAD as it approaches 1.10. A break above that is very significant if sustained. But I believe the pair should be in ranging mode, and the 1.10 area, or slightly above such as 1.1100 may serve as resistance for a bearish attempt towards 1.02-1.03.

Fan Yang
Currency Analyst
Commodity Trading Advisor

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