This is a look at the USD/CAD as it rocketed higher in the midst of what has to be considered still a bearish environment. I discuss the set ups – both short and long-term – that I am watching and the reason for my hesitancy to get too bullish.
One of the keys is the parity level which has not been able to maintain bullishness or even bullish momentum too far from this major psychological level. Add to that the 200DMA overhead and there USD/CAD remains under pressure. Stronger crude can only help the loonie at this point and allow it to gain on the greenback.
The way in which this pair shot higher puts into question in issue of more follow-through and yet it’s also troublesome to be a top picker since the momentum was so clearly up. The trick is to balance the short and longer-term set ups which is what I explain in this video.
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