USD/CAD put in an aggressive bearish trend in June and early-July, but has seen 50% of that prior move wiped out in a retracement.
The Bank of Canada threatens to jolt currency volatility with its July monetary policy update if the central bank fails to confirm the market's relatively hawkish expectations.
USDCAD had a brutal start to the month of June, but over the past week shown continued signs of recovery. But bearish potential may still remain on a bigger-picture basis.
The Canadian Dollar gapped higher while the anti-risk Yen fell as markets reacted to reports that the US will shelve planned tariffs on imports from Mexico.
USDCAD has made a trip back to range resistance ahead of the Bank of Canada's interest rate decision on the calendar for tomorrow.
This morning brought jobs data out of both the US and Canada, and this gave a quick wick of strength in USDCAD as the pair re-tested 1.34. But big resistance is ahead.