January 20, 2023 15:41 GMT
USDCAD Sees Solid Retracement Of Mid-Week Risk-Off
- USDCAD steps solidly lower, reversing a 25 pip higher after the US opening bell with a more than 75 pip drop to a latest session low of 1.3414, starting before and continuing after stronger than expected US existing home sales.
- It marks a more notable reversal of yesterday’s clearance of resistance at the 50-day EMA of 1.35 but doesn’t yet fully retrace the push higher after Wednesday’s collection of weak US data sparked a risk sell-off in equities instead of a rate relief rally.
- Still downside scope from a technical perspective, with support at 1.3322 (Jan 13 low), but e-mini S&P for now remains relatively restrained at +0.6% and might need to see more upward momentum to drive USDCAD much lower.