USDCAD had a nice Sell rejection yesterday on the Daily chart.
This is caused by the massive rejection on CAD and not USD. (See daily CAD weighted average below) As you know we are bearish on CAD and yesterday CAD for the second time was unable to break the most recent resistance and it is more likely to see further weakness in CAD.
OIL is very close to the resistance and the round number of $60. Any sharp fall in OIL going to cause CAD weakness and a rise in USDCAD.
DXY is also getting very close to the rising trend line
If OIL is getting closer to the resistance and CAD average is heading lower and USD is likely to rise then USDCAD long is a reasonable trade.
Regards,
KHAN
This is caused by the massive rejection on CAD and not USD. (See daily CAD weighted average below) As you know we are bearish on CAD and yesterday CAD for the second time was unable to break the most recent resistance and it is more likely to see further weakness in CAD.
OIL is very close to the resistance and the round number of $60. Any sharp fall in OIL going to cause CAD weakness and a rise in USDCAD.
DXY is also getting very close to the rising trend line
If OIL is getting closer to the resistance and CAD average is heading lower and USD is likely to rise then USDCAD long is a reasonable trade.
Regards,
KHAN
Comment:
Just see how CAD Yields breaking layers of supports. This shows CAD currency will weaken soon.