The USDCAD failure to rally could lead us lower.

I think the bulls expected a log higher prices out of the loonie as crude oil fell apart, and Canadian data (especially unemployment) came unraveled. However, the USDCAD lack of upside momentum with crude oil being destroyed last week and recently has traders scratching their heads. A move below the 1.4000 level trend line could expose a quick move below the 1.3800 level near term. If you are bullish, you must be defensive now.