The USDCAD sprung back to life during the past several days as investors bought up the safer currencies like the dollar due to the ongoing debt turmoil in the euro zone. As you can see, the pair soared to as high as 1.0741 from 1.0297 before hitting some resistance at the downtrend line. The pair eventually closed at 1.0519. With an overbought condition, it could now fall back again, probably reaching somewhere around 1.0226 unless of course risk aversion takes its cue once again.
The pair could lose some of its recent gains due to some profit taking actions. Moreover, the expected 24,300 workers that were recently added by Canadian firms could also cause the Loonie to rally. Watch out for its result tonight!