FXstreet.com (Barcelona) - The USD/CAD fell on increased risk appetite and surging commodity prices. The pair was also pressured as Canada's consumer-price inflation rose more than expected, making the inflation-targeting Bank of Canada less likely to ease more aggressively.
Since late-October, the USD/CAD had failed four times to penetrate the 1.30-area resistance. The pair broke the diagonal support yesterday and pared losses after touching the 1.22-area support.
We believe the decline will likely continue and sell the pair with stop at 1.2850, said Hans Nilsson, analyst at CMS Forex.