FXstreet.com (CÃ³rdoba) - The Canadian Dollar is recovering against the Dollar. USD/CAD is back below 1.1000 after Greenback failed to hold above the zone. The pair plunged from 1.1090 to 1.0930. Crude-oil tumbled today affecting the Canadian dollar that despite the recent recovery is still a few pips below the opening price. On the upside, resistance lies at 1.1090 (intra-day high) and 1.1125 (August 17 high).
Anna Coulling, analyst at Master and Master, affirms: If we start with Thursday, the wide spread down bar suggested a bearish engulfing pattern to forex trading for Friday, which failed to materialise with the session ending higher, and with the deep lower wick of the trading session indicating that the US dollar bulls controlled the session. The depth of this shadow suggests that we should see the USD to CAD rise early in the trading week with the low of the session finding support just above the 1.08 level, a price point which has provided a bounce to the pair in the past, most notably in mid May. For any sustained move higher we will need to see a break and hold above the 1.11 price handle and should this be breached, we could see a move higher once again as US dollar strength returns to the forex market in the new quarter.