Chart Analysis: USD/CAD

The USD/CAD looks interesting over the next couple of days. We have so far seen a basic retracement, with yesterday's close very near the 0.382 Fibonacci of the latest rally to 1.0870. Today's Ivey PMI and tomorrow's combination of both the Canadian and US employment data for October are likely to tell us whether the lows are in for now, or whether we could see a test toward the lower 0.618 Fibonacci in the 1.0460 area in the event of a further rally in risk appetite and a weaker USD. The sequence that put USDCAD back above 1.0590 after a try down to 1.0200 suggests that we should be looking for confirmation soon that a structural low (1.0200) is in place.