USD/CAD has taken quite a plunge in the aftermath of the upbeat U.S. jobs report on Friday, and continues to break key support levels, looking increasingly bearish.
The pair is now at levels not seen since mid-August, and rapidly recuperating some of the gains from recent weeks. At this stage, the momentum is clearly south, and with both the U.S. and Canada closed for Labour Day, the technicals are firmly in control of the pair. Look for Tuesday’s Bank of Canada rate decision for more direction. Not everyone is convinced the central bank will hike rates, so a hike should weaken the pair even further.