Watch the 1.3208 area for support
The USDCAD dipped back lower in overnight trading and tested the low from yesterday in the process at the 1.3208-11 area. That area has also been a swing area for the pair going back to June 13. A move below on a higher CPI number, should solicit more selling.
On the topside, the 200 and 100 hour MAs were re-broken after the stronger than expected retail sales yesterday. A move back above those levels would have sellers scratching their heads a bit and we should see some further covering (the bearish bias loses its sting).
