CAD – USD/CAD surges, aiming for June highs

The USD/CAD pair has maintained a strong upward trend this month, and the rally continues this week, breaking through the 1.42 level on Tuesday. It has risen more than 400 points from the low of 1.3759 on September 8th. Note that the RSI and Stochastic Oscillator are both in severely overbought territory above 80, and more importantly, they are approaching the high of 1.4247 on June 24th. Therefore, be wary of significant resistance or even a potential correction near this level. The first support levels to watch are 1.4130 and 1.4080, which represent the upward trend line formed by the recent rise. A break below this support would be a strong indication of a pullback, followed by the 1.40 level. The next level to watch is the 100-day moving average at 1.3980 and 1.39, with a key level at 1.3750. The next major resistance levels are estimated at 1.4350 and 1.44, with a further target of 1.45.

Forecasted Range:
Resistance: 1.4250 – 1.4350 – 1.4400 – 1.4500
Support: 1.4130 – 1.4080 - 1.4000 – 1.3980 – 1.3900 – 1.3750

This Week's News Highlights:
29/9
Canada July GDP MoM +0.0%

Focus:
Thursday
Canada September Manufacturing PMI (21:30)

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