Daily Forex Update: USD/CAD

The USD/CAD has been overbought on the daily chart, with the pair climbing to resistance between 1.0680 and 1.0700. The exhaustion that is expected to stall the rally to this level (and potentially press the USD/CAD lower once again) comes from the distribution market cycle in which the daily chart has found itself all summer.

The recent rally pushed prices to the intraday double top along 1.0664 and 1.0668, an area that has now twice sent prices lower, and is currently where selling pressure waits. This also coincides with the lower level of the Autochartist Forecast area from 1.0658 to 1.0884 (F) on the 240-minute chart.