The Canadian dollar continues to appreciate against its American rival. The pair is currently trading near a support level at 1.2451, 0/8 Murray. A breakdown of this level will provide a chance of further declining to a level of 1.2342.
According to some experts, the Canadian dollar is growing due to the appreciation of oil quotes against a backdrop of the aggravation of political crisis in Yemen. A further confrontation between government and Shiite insurgents might draw Saudi Arabia into the conflict. Heavy armour is being moved to the borders of Yemen, which threatens a fully-fledged war conflict between the 2 countries.
A statement by Bank of Canada's Governor Stephen S. Poloz will be an important fundamental event today. He will comment on the country’s current economic situation and monetary policy.
Support and resistance
The nearest resistance level is at 1.2512 (1/8 Murray)
The nearest support level is at 1.2451 (0/8 Murray)
Go short after the level of 1.2451 is broken and place protective orders near the level of 1.2512 with a target at 1.2324.