Technical analysis: USDCAD approaches the August highs

The Canadian dollar is sinking alongside crude oil. A bounce to $46 in WTI crude earlier today faded on larger inventories and fresh concerns about global growth. Oil is currently trading at $44.50, down about $1 on the day.

I've been banging the drum on Canadian dollar shorts (USDCAD longs) after repeated inabilities to rally on the rebound in oil and on yesterday's better-than-expected GDP print.

The key zone of resistance at the moment is 1.3327 to 1.3353. Those are the late-August highs and the post-crisis highs. A break above may come on risk aversion on renewed oil price declines.

Looking out a bit further, the BOC decision is due a week from today. Just one bank -- National Bank -- is forecasting a rate cut currently but the OIS market shows a 24.5% chance of a cut.