The pair looks like it wants to break out of the Oct - Dec range
USD/CAD tested the 1.2668 support on Monday, but failed to break through it. Now with European traders back in the picture, this could be the break it needs.
Liquidity may be thin today, but there are some moves in the major bloc. Dollar weakness has been an ongoing theme today, and that's making for quite a number of decent moves in USD pairs.
The key support level to watch for USD/CAD would be the 5 Dec low of 1.2624. That's the last line of near-term support for the pair. A failed test to the upside on 19 Dec followed by stronger than expected Canadian economic data has sent the pair on a drive lower - and it's looking to breach the range formed since October.
Meanwhile, other commodity currencies are also making a charge as AUD/USD and NZD/USD both hit session highs on the day as well. Both pairs are closing in on a test of the 100-day MA (red line).
