Yesterday I wrote about how the 1.2700 looked like a great chance to be a buyer in the CAD. Sure enough, we have now pulled back and hit that level. I feel that this type of move represents a high probability of a bounce, so I think a buy at this level is certainly warranted.

This has the potential to move higher over the next month and I will be monitoring it as we go along. And let’s not forget the USD is anticipating a rate hike in December which will add some more upside to the USD – if, in fact, that happens.

1.2700 is the 20-EMA, a significant support level and also a round number. When we get multiple factors lining up, that only improves the chances of a rebound. I’ll be keeping tabs on this one closely.

USD/CAD – Daily Chart.