During the overnight trade, I shorted the USD/CAD at 1.0410 on the pull back from the high of 1.0440. After the pair crossed below the 200-day SMA yesterday, price action as of late looks to remain capped by this moving average. With our speculative sentiment index at 2.13, and signaling for further declines, I look for the pair to test the 61.8 percent Fibonacci retracement on the 4/22, 5/25 upswing. Lower than expected figures in new home sales, durable goods, and consumer confidence in the U.S. next week may validate my short position. All in all, I am short from 1.0440, with a stop at 1.050
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