The Canadian dollar is in a lot of trouble and has been for a while, but when you look at the longer term charts, it's probably worth noting that we are at an extreme high, an area that had been noisy, but did give way to the 1.46 level back in early 2020. So, it'll be interesting to see how this plays out, as we are trying to do everything we can to break out and go looking to search that area out.

Grinding, Not Flying Here

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This is more of a grind than it is a shot higher, but I do favor the US dollar for a whole litany of reasons, not the least of which. Recently, we've seen inflation numbers start to tick up ever so slightly. We've had a couple PMI manufacturing numbers tick up a bit. They're not strong, I wouldn't use that word, but they are higher than consensus, and that typically does have an effect on the market.

I anticipate that there should be support for any pullback in the USD/CAD, all the way down to at least the 1.3935 level. To the upside, the 1.42 level looks to be fairly resistive based on recent action, but I do think we may try to squeeze our way higher to test that area yet again. If we can break above there, it would be absolutely destructive and toxic for the Loonie, as we couldn’t get there even during the depths of the COVID 19 crisis.

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