Technical Analysis

USD/CAD breaks the 61.8% retracement of the Oct-Dec rally

USD/CAD continues to break down

USD/CAD came under selling pressure after non-farm payrolls. The strong numbers ally fears of a global slowdown — or at least a North American slowdown.

USD/CAD dropped to 1.3110 from 1.3135 in a move that defied initial USD strength elsewhere. The dollar is now under some broad pressure.

More importantly, USD/CAD fell through the 61.8% retracement of the sharp rally to 1.3662 from 1.2783 from Oct to Dec. The Canadian dollar was the top performer in January and is continuing right where it left off.

As Greg mentioned, it also took on the 200-day moving average.

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