The Canadian dollar continues to tumble with a majority of the other foreign currencies as the U.S. dollar continues to advance.
Substantial resistance in the CAD can be seen around 9175 and, if this market is to continue lower, price will likely be unable to produce a relatively new swing high above the 7/31 peak at 9185. With that being said, there is also a level of potential resistance around the 9163 level that could also come into play today.
The market has been relatively sideways over the last few days; however, all things considered, the near-term bias appears to favor a negative outlook in this market and selling rallies into resistance could be a one potential strategy to consider implementing in the Canadian dollar.
The next level of noteworthy support in the market doesn’t come into play until the lower end of the recent range around 9107 and 9100. As long as price continues to trade below 9185, traders should continue to be very cautious when buying this market as the underlying theme of lower lows and lower highs coincides with a bearish agenda.
Sep. ‘14 Canadian Dollar 30-minute Bar Chart (e-Signal)