Forex: Canadian Dollar remains firm, close to yesterday’s 3 week high

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The recent comeback of risk appetite and strengthening within the commodities has had a positive influence on the Canadian Dollar, helping it strengthen against the USD. At present the USDCAD currency pair is trading around the 0.9719 levels, slightly higher than yesterday’s low of 0.9685 in the early parts of the United States session which marked a 3 week high for the CAD against the greenback.

 

The ongoing political turmoil in the North of Africa and in particular Libya, has seen the price of Brent crude Oil edge higher in recent sessions and through its strong correlation with the Canadian Dollar, as one of Canada’s main exports includes Oil, has helped drop the USDCAD currency pair. The Asian session has seen the USDCAD remain firm near yesterday’s US close of 0.9712.

 

The Canadian Dollar has gained over 1.3% this week against the Dollar; resistance for the USDCAD pair is currently seen around 0.9730/8 – last week’s low and the 38.2% Fibonacci retracement level of this week’s drop from a high of 0.9822 to a low of 0.9685. Support for the pair is seen at yesterday’s low and further stronger support is seen at 0.9666 level – the March 9th low which marked a 40 month low for the USDCAD.