The USD/CAD chart broke below a major trendline that stretches back to May today. However it close above the support line of the up trend.
Reuters talk about what's driving the Canadian dollar and what's next.
"It's potentially a watershed day for the Canadian dollar because it attempted to break below the trend line since May ... and that may signal big things for the Canadian dollar ahead," said Adam Button, currency analyst at ForexLive.
"To start the year there has been an incredible battle in Canadian dollar trading between oil, which has been declining, and Canadian economic news which has been sparkling. And with the rebound in oil prices today, the road ahead is clear for the Canadian dollar which gives him the chance to continue the rally if he can break the diagonal support and 200SMA.
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