USD/CAD turns lower after a test of 1.2450
Friday's high of 1.2450 held on a test earlier today and that might give USD/CAD shorts an opportunity to nibble. In the bigger picture, there are a series of lower highs as well.
If risk sentiment can stabilize along with commodity prices, then there is plenty of opportunity for a slide back down to the 1.2250. Put another way, the minor double top in the past few hours might be signaling that the rout in risk assets is coming to an end.
Looking at the economic calendar, the big events for the Canadian dollar this week are late. Wilkins speaks on Thursday and the Canadian jobs report is on Friday. Until then, the loonie will be trading on oil and risk sentiment.
I spoke to Reuters about the loonie on Friday.
Update: Just like that, 1.2450 gave way.