USD/CAD

Commodity exporting countries currencies are weak against the U.S. dollar. Especially energy and metal exporters are showing significant weakness. One of those is the Canadian dollar. USD/CAD cross rate is now testing a strong resistance at 1.3040 levels. Breakout above 1.3040 levels can result in a runaway price movement to historical high levels. Though RSI, a momentum indicator, is not confirming the latest rally (more info on negative divergence on RSI). While in the short/medium-term the uptrend looks over extended, long-term traders/investors should keep a close eye on the critical resistance at 1.3040. Breakout above 1.3040 level can complete a massive multi-year base formation with a long-term price target of 1.60.