Over the month of June, the commodity currencies gained versus the US dollar after a month that saw an almost uninterrupted decline. The current downward rally for binary USD/CAD options is not likely to continue for too long. Commodity prices are expected to decline in future which will reverse the direction of the loonie.
Meanwhile QE3 is unlikely for now and speculation on this can continue to put downward pressure on USD/CAD in the coming days to couple of weeks. However if QE3 expectations are reversed the greenback will rise on safe haven demand with risk-averse flows out of the Canadian dollar.
In the coming days binary investors should expect support of the U.S. currency around 1.0120, which is 50.0 % Fibonacci retracement of the 0.9795-1.0445 movement. The 200-day SMA is also very close to this support level at 1.0100. Break below the latter will move the target on 1.0044, which is 61.8% fibo. On the opposite direction first resistance is seen at 1.0230, followed by the psychological 1.0300.
Disclaimer:
The information in this analysis is collected from different sources and should serve for informative purposes only. The author shall not be held responsible for the validity of the presented information. No part of this analysis recommends the purchase or sale of a currency pair or any other financial instrument.
