Trade Of The Day: USDCAD To Test Pivotal Trend Line
Fundamental: WTI oil prices once again dropped below $40 after the decision of the OPEC to keep crude production at a high level. Against a stronger greenback overnight, USDCAD pushed through major psychological level of 1.3500. In face of weakening oil prices and diverging monetary policy stance with the Fed, markets will be looking for hints from BoC Governor Poloz’s speech tomorrow in regards to the central bank’s future monetary policy
Technical: Bulls have the ball while 1.3450 supports intraday downside expect a grind higher to test stops above 1.3600. A close below 1.3389 would ease the near term bullish bias and suggest a correction is underway.
- I am looking for price to extend higher to test the topside of the daily projected ascending trend line. I will be monitoring price action as we challenge stops through 1.36/1.3650, watching for intraday reversal patterns to venture short looking initially for a retest of former 2015 highs at 1.3450 and 1.3250 in extension as per the chart below
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