SPOT USDCAD - meeting targets but still bearish

All of our downside weekly targets were met yesterday as Tuesday’s minor renewal of selling pressure was followed by a negative acceleration. Canadian news was the driver of already bearish sentiment. This move took USDCAD to new 2 ½ year lows and a correction of half of the 2012-16 improvement. Of course, the speed and scope of the fall leaves intraday signals for sentiment oversold despite a firm bounce from the extremes. Nonetheless the tone is clear and so, this morning’s call is a modest Sell from 7am but leaving room to Sell any Rally to 1.2276. The risk is 1.2320, intraday Marabuzo line, with an immediate target of 1.2200. A move through that point then exposes sentiment to 1.2174 and 1.2139, yesterday's low.