FXstreet.com (Barcelona) - The Dollar has broken the 1.0575 level against the Canadian during the European session after rising around 130 pips from intra-day low at 1.0165 in the early European morning to reach new 1-week high at 1.0595 in its way to test 1.0600 level.

Currently the pair is trading around 1.0575/85, 0.95% above today's opening price action at 1.0475.

The Varengold Bank Research Team comments: After going through the 1.0600 level at the beginning of last week, the USD/CAD has established a support level of around 1.0430 and a downward trend line. It is trading currently close to the downward trend line, which seems to indicate an important resistance after the pair tried to break it several times. A break through this bearish resistance might be a sign for more gains towards the horizontal resistance level of around 1.0600.

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