Over the past 48 hours, the USD/CAD has been on fire, plunging more than 100 pips. Following the Bank of Canada’s (BoC) rate decision and the EIA crude oil inventory report, the Loonie has gained big vs the Greenback. Now, it appears as though a key macro Fibonacci support level is destined to come into play.

Today’s economic calendar for the Loonie pales in comparison to yesterday’s. An unexpectedly hawkish BoC and weak EIA oil supply report drove sellers to the USD/CAD in mass. Without any primary market drivers scheduled to stop the bumrush south, it looks like another daily red candlestick is about to become a reality.

No doubt about it, it has been a big week for the USD/CAD. Let’s dig into the technicals and see if we can spot a trade or two.

USD/CAD Approaches Fibonacci Support

In a series of Live Market Updates from the past several weeks, I outlined the importance of a key 78% macro Fibonacci retracement on the daily chart. Now, rates have plunged beneath this level and are approaching an important area of support.

For the near future, there will be one level on my radar for the Loonie:

• Support(1): 62% Fibonacci Retracement, 1.3150

Bottom Line: Friday’s release of U.S. Non-Farm Payrolls is very likely to draw an abundance of action to the USD/CAD. Subsequently, a buying opportunity may come into play.

Until elected, I will have buy orders queued up from 1.3151. With an initial stop at 1.3119, this trade yields 32 pips on a static 1:1 risk vs reward management plan.