Since early September the USD/CAD has been making a steady climb to the upside. In part that’s been because of a stronger USD. However, the commodity currencies haven’t been doing all that well across the board. Which again can be related to a stronger USD.

As it stands the USD/CAD has pulled back from its highs, but I think we might be looking for a bounce. We are right around the 1.2700 level, which lines up with the 20-EMA, which is something I watch closely.

I suspect that if we can break below 1.2700, then we might just be in for a bounce. I think the probability is high that this will be a level that will, in fact, give us a good degree of support. I always like to look for levels that have a number of indicators lining up and in the CAD is appears we do.

USD/CAD – Daily Chart.