The Canadian dollar extended its major (long-term) uptrend to a new 4-month high during April, hitting 0.81512 before closing at 0.81316. Despite being sharply overbought, as indicated by monthly stochastics being above 90%, the loonie should be expected to continue to strengthen. Heading into May, support is at the previous 4-month low of 0.77634 (January 2021) with resistance at April’s high. Beyond that mark is the high from January 2018 of 0.81595, then 0.82891 from September 2017.
Theoretically: There hasn’t been a clear reversal pattern, most notably a new 4-month low, the historic month of March 2020. If still long the loonie, continue to hold, until further notice.
