USD/CAD Exchange Rate Prediction – The Dollar Rise on Risk-off Trade
The dollar surged higher and hit key resistance levels as Canada went to the polls on Monday. Riskier assets headed south which has benefited the greenback as a safe-haven currency. Prime Minister Trudeau and his Conservative challenger O’Toole appear to be running neck and neck.
Technical Analysis
The dollar moved higher against the Loonie, as the safe-haven lure of the greenback pushed the U.S. currency higher against most major currencies. The exchange rate hit resistance near an upward sloping trend line that comes in near 1.2910. Support on the exchange rate is seen near the 10-day moving average at 1.2690 and the 50-day moving average at 1.2600. The exchange rate is overbought as the fast stochastic is printing a reading of 81, above the overbought trigger level of 80, which could foreshadow a correction. Short-term momentum has turned negative as the fast stochastic generated a crossover sell signal. Medium-term…
