USD/CAD up 36 pips
The US dollar is getting a broad bid today and CAD is actually outperforming its commodity cousins by a fair bit, but the USD/CAD chart is worth a look.
The pair is at the 38.2% retracement of yesterday’s sharp drop.
I wonder if the market is starting to think about a US taper as well. The Fed will probably be the next domino to fall and you don’t want to be short USD on the day that happens.
However I don’t think today’s that day, nor is any day this week. The Fed is in the blackout until next Wednesday’s FOMC. That will be pivotal for the dollar but until then I think you can lean against these lines in USD/CAD.