USD/CAD has pulled back as far as 1.2758 after stalling at 1.2975 late yesterday. Today’s bout of reflation after China’s PMI and news of a fresh stimulus package there helped catch the market leaning the wrong way, fixated on the tough zone of resistance in the 1.3000/20 area. The retracement came close to 38.2 Fibo of the 1.2393/1.2975 rally that unfolded in spectacular fashion from Friday through Tuesday.
Chart support is at 1.2722 if the 38.2% Fibo is overcome. USD/CAD trades at 1.2783.
