USD/CAD saw no pullback at all yesterday and the underlying trend higher has extended higher through the overnight session to reach the low 1.05 area. A minor stall in the move up coincides with the ultimate Fibonacci resistance of the July/August down leg—76.4% retracement point at 1.0522. That is the only notable resistance point between spot and a return to a 1.06 handle. Minor topping signals on the hourly charts again hint at some modest corrective potential but we doubt USD losses will extend too far intraday. Trend momentum remains strongly bullish—a situation reflected across all the shorter-term study periods. We expect firm support in the mid/upper 1.04s now.
