USD/CAD (current price: 1.2775)
The Canadian Dollar has been the strongest commodity-currency in the past few weeks despite some weaker than expected economic releases from the country. The pair declined to new 10-month lows, below the important technical support at 1.28 after hitting 1.47 just a little more than two months ago. The rise in oil and gold is mostly behind the move, as the two commodities make up a big part of the Canadian exports. The pair might be ready to rebound today after three days of sharp losses.
Our assessment: USD/CAD might bounce back above 1.28, despite the underlying bearish trend in the pair, probably up to the declining trend-line near 1.29.
