USD / CAD – Trying to extend its largest rally in 4 Months pushing through the key 0.9850 level

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.

Early last month, the Canadian dollar broke through this key 0.9850 level and continued lower to trade down at levels not seen for 12 months around 0.9650.  In the last few weeks, the Canadian dollar has reversed strongly and moved back to the key 0.9850 level where it sat for the last week trying to push higher.  As expected this level provided stiff resistance however in the last 24 hours the Canadian dollar has been able to push through to its highest level in the last month moving up towards 0.99.  Is it able to maintain its hold above this key level?   (Daily chart below)

daily chart