Dollar Loonie at an interesting point
Usd/Cad is trading now at 1.3276 after testing an inter-day high of 1.3288. The level 1.33 to 1.3320 is a strong barrier to break and If it breaks convincingly then there is more upside to come at-least by a 100 pip from there or it could be a beginning of a new rally towards 1.3638 but that we cannot comment on right now, we will have to wait for that breakout move and see how a retest of support (previous barrier/resistance) plays out and how prices are also supported fundamentally at these levels.
Yesterday's FOMC has had nothing much to offer than what is already now, In my opinion it was a more neutral minutes with slight very slight hawkishness.Hence I feel technically and fundamentally we should look at a sell of Usd/Cad here between 1.3275 to 1.3285 level with stop at 1.3360 for first target of 1.3200 area and then 1.3140 which has strong support.
We change our view on this pair only if it can manage to break above our stop and keep rising.I shall keep you posted on how this trade develops and how an exit should be made.
Fayaz Sadik Sait