USD/CAD (current price: 1.2936)
The pair had a volatile day yesterday as the strength in oil and the stock market decline sent mixed messages to investors. USD/CAD finished flat on the day, but the cross is higher today in early trading as the U.S. Dollar is acting bullish against the majors again. The pair hit 1.28 last week following the sharp 600-pip rally that took it above 1.30 in just five days. The Canadian Dollar looks vulnerable here, with only oil supporting the currency against the USD.
Our assessment: USD/CAD rebounded strongly from the lows near 1.245 and it seems to be headed back to 1.30 after a brief correction, with the next resistance zone ahead around 1.32
