USD/CAD fails to recover after plunge

The massive plunge which was caused by the Canadian GDP and employment data releases mid-Friday was followed by a subsequent movement downwards.

The Greenback dashed through the monthly S1 at 1.2739 and fell down to the November low at 1.2668. This monthly resistance is likely to delay or even halt the pair from further decline, as the 1.2668/1.2910 has managed to confine the pair already since October 24.

Even though technical indicators flash mixed signals, their positioning points to a possible recovery either up to the monthly S1 or the 200-hour SMA at 1.2739 and 1.2882, respectively.

In case this expected movement north does not occur, the US Dollar might still push for the weekly S1 at 1.2630 and even lower during this week.

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