The USD made a valiant effort at staving off parity on Monday, as it rose to 1.04 but it failed precisely where it was supposed to at 1.0406 and has been run over but the CAD in the past day, creating a bearish engulfing candle formation that points to further losses.
Though close, parity isn’t a foregone conclusion. There is support at 1.0253 followed by 1.0207 but a test on those two levels in highly likely in the coming day and a break of 1.02 would make parity almost a slam dunk.
On the upside, the only level that matters is 1.0406. It’s the key resistance line and if USD/CAD can break above it, go with it because it’s probably going to 1.08.