Expectations over the short-term are for a weaker Euro, although the market may be subject to periodic short-covering rallies.

Weaker than Expected Housing Figures Pressure Canadian Dollar.

Traders decided to shift their focus away from the energy markets and to instead refocus their attention on the stumbling Canadian economy.

The USDCAD rose on Thursday as a report showed new home starts declined more than expected last month.

Two-sided fundamental data is keeping the USDCAD in a range. Strong surges in crude oil, because of its strong link to Canadian exports, is keeping the Canadian Dollar afloat while poor economic data is attracting selling pressure.

Friday's employment report coupled with a weak energy market could prove to be bearish for the Canadian Dollar.

Trend traders are having the hardest time trading this market as the fundamental focus shifts almost daily. The best scenario for a bullish USDCAD trade would be a bearish Canadian economic report and a top in energy.

The economy has been cooperating with a series of weak reports. All it is going to take to send the Canadian Dollar sharply lower is a sizeable break in the crude oil market.

Trade both side of the market, but begin to lean to the long side of the USDCAD especially if crude oil begins to weaken.

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