The U.S. dollar has potential to climb against the Canadian currency as the usual November seasonal trend is being corroborated by the bullish medium-term chart.
A study of USD/CAD's seasonal performance for each November since 2000 shows it has posted a positive return in 15 of the last 23 years, or 65% of the time.
Seasonality should not be considered in isolation, but when combined with other factors it can be a useful tool.
USD/CADas oil prices tumbled and despite minutes from the Bank of Canada's latest meeting showing that some policymakers saw the need for more interest rate hikes.
It found support this week well ahead of the 1.3591 Fibonacci level, a 38.2% retrace of the 1.3093 to 1.3899 2023 rise.
As 14-week momentum remains positive, reinforcing the overall bullish bias, scope grows for an eventual break above the 2023 1.3899 peak.
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