USDCAD cracks 38.2% and trend line
The USDCAD has tumbled lower with technical levels being taken out along the way.
The selling started yesterday with a break below a floor at the 1.3388. Today, the pair danced with the 200 hour MA (green line) before deciding to move away (to the downside).
More recently, the 38.2% and a lower trend line has been breached (at 1.3337 and 1.3325 respectively). The 50% is ahead at 1.3298 (call it 1.3300).
Crude oil is traing up $1.00 now or 1.78%. That is helping to strengthen the CAD. There may also be some short in CAD that are getting squeezed. The employment numbers last week were much stronger and althought the reaction on Friday was mixed, the technicals have weakened since that time and combined with the memories of two strong numbers, may have weakened the CAD bears hand.
