The loonie is tracing out a possible hammer reversal on the daily chart.
USD/CAD hit a three-month low of 0.9842 is now 50 pips higher and threatening barriers at 0.9900/05.
The pair has fallen in 10 of the past 12 weeks and is parked just above solid support at 0.9800.
The Canadian dollar has been trading almost tick-for-tick with the S&P 500 for the past three months so stock market skeptics may use this pair as a proxy.
Caution is warranted, however, with Carney speaking tomorrow. He will warn about household debt levels and housing but tends to lean hawkishly, which will hurt USD/CAD.
