U.S. stocks are once again getting blasted, led by extreme volatility and a near 200 point mid-session drop in the DJIA. Sellers are stepping in consistently, with political fears being today’s soup du jour. Reports are hitting newswires regarding the Brexit vote delay becoming official and a court in China ordering Apple to stop selling some iPhone models. The tone on Wall Street is skittish, with equities investors taking a cautious stance toward assuming any new risk.

On a positive note, the USD/CAD is back on the bull following a muted WTI crude oil session. Even though Canadian Housing Starts (Nov, YoY) came in very positive, the recent exodus from the Loonie continues. At the moment, the USD/CAD appears ready to test the fresh yearly highs posted last Thursday.

USD/CAD Technical Outlook

From a purely technical standpoint, it is difficult to argue with the prevailing uptrend in the USD/CAD. However, with the weekly inventory cycle set to kick off tomorrow afternoon, we may see a major shift in this pair over the next 48 hours.

For the near future, there are two levels on my radar:

• Resistance(1): 2018 High, 1.3444
• Support(1): 38% Current Wave Retracement, 1.3337

Overview: As long as rates remain above the 38% current wave retracement (1.3337), the daily uptrend is best respected. However, this week features a full slate of economic events facing the USD/CAD. Aside from the API and EIA crude oil stocks reports, U.S. CPI (Nov.) is due out Wednesday and Retail Sales (Nov.) is to be released Friday. All in all, this has the potential to be an extremely active five-session stretch for the Canadian dollar vs the Greenback.