USD/CAD retains a soft undertone on the charts despite failing to crack key support at 1.3330 in yesterday’s run lower. This support (tested four previous times this year) has been rock solid so a sustained push lower will be a significant technical event. 

Trend momentum studies are tentatively leaning bearishly for the USD across the shorter and longer-term DMI studies. This tilts risks to the downside for spot and should limit the USD’s ability to rebound. 

A break under 1.3330 targets a test of 1.3230 (the Nov low) fairly quickly but broader implications would suggest the risk of a drop towards 1.27/1.28 in the next couple of months.