The USD/CAD has been challenging the 1.240000 mark in early trading this morning. The slight move higher will get the attention of speculators because the forex pair has been traversing within important mid-term lows. A mark of 1.23500 was tested yesterday, the day before a low of 1.23380 was seen. Incrementally the past handful of days has seen the USD/CAD move higher.
Since achieving a low of nearly 1.22870 on the 21st of October the USD/CAD has risen in value. This move correlates remarkably well with the broad forex market as the USD has picked up a bit of buying momentum. While the USD/CAD does remain within the lower elements of its one month price range, speculators may believe the trend may be showing signs of developing a path higher.
If the 1.24000 juncture proves it can develop as support today, this could certainly be a signal additional buying momentum may generate power. The last time the USD/CAD was able to trade with any vitality above the 1.24000 level was on the 18th of October when a high of about 1.24100 was seen briefly. And the last time the USD/CAD traded above the 1.24200 mark was on the 14th of October and this occurred as the forex pair was being hit by a massive bearish cycle. The one month high for the USD/CAD was seen late in September when the 1.27720 mark was demonstrated.
Speculators now have to decide if momentum short term will continue to produce a slight move higher. Traders may want to remain cautious and not over extend their positions with overly ambitious trading goals. If current support levels are maintained and the 1.24100 mark is challenged, yes it may be logical to look for higher values near the 1.24150 to 1.24200 levels short term.
Buying the USD/CAD may feel like it is going against the mid-term trend, but the short term has produced a rather strong move higher in recent trading. Traders who want quick hitting wagers may believe the upside offers the best speculative opportunity to profit in the short term. Taking a long position on slight reversals lower which hover near support to ignite buying positions which seek higher moves may prove to be worthwhile near term.
Canadian Dollar Short Term Outlook:
Current Resistance: 1.24200
Current Support: 1.23780
High Target: 1.24550
Low Target: 1.23360
