The Canadian dollar is drifting in a USDCAD range of 1.2940-1.3040 and will likely continue to do so until Fed Chair Powell delivers his speech at the Jackson Hole symposium.
The US Dollar is holding near a key spot of resistance today. This follows a massive topside run that developed in the currency last week. It all started with a bull flag formation that had setup ahead of last week’s open, which I talked about in the technical forecast. That breakout hit quickly, with USD finding resistance at a familiar level, setting up for another breakout last Tuesday. The next breakout hit on Thursday and prices continued to rally through last week’s close, and I took another look at the matter on Friday to set up ahead of this week.
West Texas Intermediate continues to recover from Monday’s low, with prices rising from $93.38 to $95.19/barrel overnight. The gain was supported by the American Petroleum Institute crude stock report showing inventories fell 5.632 million barrels in the week ending August 19.
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