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USDCAD Struggles To Re-Test 1.32 Despite US Dollar Strength

CANADA
  • USDCAD appears reluctant to see a push back above 1.32, having topped out yesterday at 1.3193 and today at 1.3195, at least for now.
  • Resurgent USD strength sees CAD outperform all other majors on the day except AUD after the strong jobs gain overnight.
  • A more concerted push higher could see resistance at 1.3229 (20-day EMA), whilst the day’s low of 1.312 came closer to but didn’t trouble longstanding support at 1.3084 (1.618 proj of Apr 28–May 8–May 26 price swing).
  • There’s decent cumulative option expiry at nearby strikes for tomorrow’s NY cut, with $631m at 1.3155 and $379m at 1.3145, which could limit upside moves in the interim, although the largest of the day lands at 1.3300 with $732m.

Source: Bloomberg

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