There was a significant "blowout" movement in USDCAD prices this past quarter, but I have a hard time changing my fundamental assessment that the Canadian dollar should remain overall weak against the greenback this year. Technical analysis currently supports a bullish hypothesis on this pair as prices recently rebounded on a long-term trend line. Note the critical technical level around 1.285. I suspect that if US and Canadian employment figures next week lead to further gains, a significant low will have been put in at the close of the 1st quarter with a re-positioning of market actors with a psychological shift again towards the USD.
