Fundamentals Could Be Shifting as USD CAD Posts Reversal Bottom

After reaching a new low for the year, the USD CAD was able to rebound and close higher.  The technical reversal to the upside indicates that buying may be greater than the selling at current levels or that the fundamentals are getting ready to change.

The Canadian Dollar took its cues from the equity markets today. A weak stock market kept downside pressure on the Canadian Dollar most of the day by giving long traders an excuse to take profits. .

Commodity markets were also under pressure today. This scenario provided additional selling pressure on the Canadian Dollar. Weak copper and crude oil markets in particular fueled the selling pressure while a higher gold market limited some of the losses.

After reaching a new low for the year, the USD CAD was able to reboundand close higher.  The technical reversal to the upside indicates thatbuying may be greater than the selling at current levels or that thefundamentals are getting ready to change.