USD / CAD – Consolidating Around the Key 0.9850 Level After its Largest Rally in 4 Months

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 month or so, the Canadian dollar has reversed strongly and moved back to the key 0.9850 level where it sat a couple of weeks ago trying to push higher. As expected this level provided stiff resistance and in the last week it has fallen away back down to support around 0.9750. In the last couple of days the Canadian dollar has pushed off the support level at 0.9750 and moved back towards 0.9850. (Daily chart below)

USDCAD Technical Analysis Daily Chart.

daily chart

USD/CAD

Oct 10 at 23:15 GMT

0.9823/25

H: 0.9829

L: 0.9768

S3	S2	S1	R1	R2	R3
0.9750	0.9650	0.9400	0.9850	0.9950	1.0000

USD/CAD Technical

During the early hours of the Asian trading session on Thursday, the Canadian dollar has continued its push higher from the 0.9800 level.
For a few weeks, the 0.9850 level was being a solid support level and now this level has re-emerged as one of significance causing reasonable resistance last week and potentially again.
Current range: trading just below the key level at 0.9850.

Further levels in both directions: