The USD/CAD pair dropped on Wednesday as the USD lost strength despite the German and Portuguese bond auctions that showed an incline in demand, and that made investors to buy more euros, accordingly, the euro rose against US dollar, while stocks in Europe pared early gains.
Euro advanced sharply against the U.S dollar after the International Monetary Fund said that it could expand its capacity to 1 trillion dollars from 385 billion dollar in order to support the global economy and prevent the debt crisis from spreading outside the euro-area region.
The USD/CAD pair could still rise if pessimism continues to dominate markets, as uncertainty remains the main theme in markets, and that could also lead to deep fluctuations for the USD/CAD pair.
Thursday January 19:
Canada won't release any new data, so fluctuating trading in the pair is expected, and eyes will be focused on Europe and the crisis that could cause any change in trading.
USD/CAD Pivot Points (Time Frame: 1 Day)
Name S1 S2 S3 Pivot R1 R2 R3