USD / CAD – The Key 0.9850 level Holds Firm and Fends Off

For the most part since the beginning of June, the Canadian dollar has experienced a very strong move from 1.045 down below 0.9650. At the end of August, the Canadian dollar was finding strong support at 0.9850 and in doing so established a short and narrow trading range between 0.9850 and 0.9950.   For the most part since, the Canadian dollar has remained below the key 0.9850 level.

At the beginning of September, the Canadian dollar broke through the 0.9850 level and continued lower to trade down at levels not seen for 12 months around 0.9650. In the last month or so, the Canadian dollar has reversed strongly and moved back to 0.9850 where it sat a couple of weeks ago trying to push higher. As expected this level provided stiff resistance and a couple of weeks ago it fell back down to support around 0.9750.  In the last week or so, the Canadian dollar has pushed off the support level at 0.9750 and moved back towards 0.9850 where it was forcibly turned back and pushed back towards 0.9750 again.  This price action only serves to reinforce the significance of the 0.9850 level.   (Daily chart below)

daily chart