By Russell Glaser
Political strife in Canada may bring weakness in the value of the Canadian dollar allowing for traders to find entry opportunities near a key moving average.
The unveiling and subsequent rejection of the Canadian budget by three opposition parties does not bode well for continued strength of the Loonie. Despite the currency’s strong performance, the political gridlock may bring a pullback in the current downtrend for the USD/CAD.
Moving to the daily chart, the pair has found significant resistance near the 100-day moving average (red line) which comes in today at 0.9930. This level may offer traders a good entry point into the downtrend. Also providing resistance has been the 50-day moving average (green line) at 0.9840. Further resistance may be found at the January high of 1.0060.
Targets for the pair should be Friday’s low of 0.9750, followed by the all-time low for the pair at 0.9666.
Forex Market Analysis provided by ForexYard.
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