Technical Analysis
USDCAD is currently at a level where it has retested the massive uptrend line that had been recently broken. After the retest the pair actually has retreated a little bit. We can also see that the price is capped by a downtrend line which has been tested and seemingly respected.
Fundamental Analysis
Bank of Canada is likely to continue to be aggressive given that the economic numbers coming out of Canada continues to be good in general. Unless price of crude oil rolls over to the downside, Canadian Dollar will be well-bid.
Trading preference
Given the fact that the pair has retested the uptrend line that had been broken and also seems to be respecting the down trend line shown in the picture, the pair is likely to move downwards. 1.20 area is likely to be massively supportive though.
