USD/CAD breaks the weekly low
USD/CAD cut through yesterday's low to the worst levels since September 7.
The Canadian dollar is getting a big tailwind from rising energy and commodity prices. The US dollar is also under some modest intraday pressure as equities rebound.
For USD/CAD, there isn't much standing in the way of a fall to 1.25. If you believe in the current breakout in oil prices, it can go much lower.
I see some minor support being challenged now but on a break of 1.25 that will give way and so will the series of higher lows.
That would tee up a big head-and-shoulders pattern with an initial target just below 1.20.
