USD/CAD in largest gain since May

A downgraded growth outlook from the Bank of Canada and a fall in the price of oil has led to a sharp selloff in the Canadian dollar.

As a result, USD/CAD is up more than 150 pips to 1.3128, the highest in two weeks.

The gains today are now brushing up against the 21-day moving average with the 55-day just ahead at 1.3159. The 50% retracement of the October decline is now also just above spot.

I'm a USD/CAD bull but I think the pair will need a bit of help from oil to make the next leg higher. At the moment, WTI crude is pushing down against the 55-day moving average and that's an important spot to watch.