If looking at the pair’s movement today, the Loonie failed to breach the upper channel line, reinforced by the 55– and 100-hour SMAs and the weekly PP, and had thus returned near the 0.7422 mark by mid-session. It is likely that today’s slight movement south was driven by this resistance; thus, the rate should return near in this area and try to break out in the northern direction. A near-term upside target is the 50.0% Fibo and the weekly R1 at 0.7540, while the Canadian Dollar could push even higher towards the 0.76 mark.
In case the sentiment takes the upper hand, the pair might depreciate down to the bottom boundary of the senior channel circa 0.7280 within the following two weeks.
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