The USDCAD is taking a little breather on what seems to be a correction Monday. The pair is down testing the lower trend line connection most recent corrective lows since the surprise cut last week. The trend line comes in at 1.2423. The high reached on the day of the cut came in at 1.2393. This would be the next level to get below, if the trend line can be broken. The lows from Jan 22, the 100 hour MA and the 38.2% retracement of the move up from the Jan 21 low all come in around the 1.2317 area. This area should attract some buyers if a dip can extend toward this area.

USDCAD taking a look below trend line support on the hourly chart.

USDCAD taking a look below trend line support on the hourly chart.

The USDCAD has had a good run of it. Will the correction Monday, lead to a further correction Tuesday and ultimately a test of that cluster of support below? We are a taking a peak below the trend line as I type.