USD/CAD drops back from higher high
The USD/CAD rally here from the summer lows continues, though a weaker dollar has seen a sharp pullback from last week’s higher highs.
A drop towards the 50-day SMA or uptrend support from the July lows looks likely, and could see fresh buying pressure emerge. Should a higher low be created, then a new leg higher towards C$1.37 and higher could begin.
A close below trendline support would dent the bullish thesis, though mid-September saw buyers emerge around C$1.34/C$1.345. A more bearish view would need a close below this mid-September zone of support.
