After testing the 1.3000 resistance, the USDCAD retraced back to the 1.22~1.27 range. The triangle pattern I wrote about a few weeks ago wasn’t confirmed and the currency pair is back to its multi-month range.
This Canadian dollars rally is fueled by raising crude oil prices, which is now trading at $51.70 per barrel for the May09 futures. This Canadian dollar rally may be short lived if the Retail Sales for January are down instead of the estimated raise of 1%.
