Once again, we’re pretty much looking for the recent ranges in USDCAD to hold, at least ahead of the key US data this afternoon: 1.090/20 on the downside and 1.0960 on the topside. A break above 1.096/1.098 should trigger momentum for a stab at 1.100, should a break happen pre-BoC. However, valuations will not allow that move to feel like a ‘knife through butter’ does. Should a topside break occur in the pair, profit taking will also be a force acting as resistance. Market participants long of USDCAD on such a break will be mindful of the fact that participants who had been buying the pair in the 1.094-1.100 range earlier in the week, ultimately lost out.
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