USD/CAD (current price: 1.2825)
The Canadian Dollar declined sharply again compared to most of the majors, following the release of a dismal Trade Balance data. The actual reading of -3.4 billion was much worse than the -1.2 billion expected. The pair is still deep in oversold territory and the rally might continue in the next few days, with resistance levels ahead at 1.2920 and 1.30. The price of oil could play an important role in the next few days, as well as the employment reports that will come out from both countries on Friday.
Our assessment: The Loonie is poised to continue the correction following the negative trade data, despite the weakness in USD/CAD in early trading, as traders still focus on the 1.28 support.
