The recent move by USDCAD under $1.3200 has broken a long-term uptrend and rising channel signaling a major change in the relative trend of the two currencies. A test of the $1.3000 round number is underway, which could confirm or reject the recent downturn. The US and Canada both have holidays this week, but at the same time, there are a number of potential market-moving reports due on both sides of the border including PMI (Monday and Tuesday), trade balances (Thursday) and employment (Friday). Because of this, USDCAD could be particularly active in the coming days.
-- Colin Cieszynski, CFA, CMT