From a technical perspective USDCAD
could run up by roughly 300 pips if it closes above 1.2910 mark. The RSI
is not over bought, MACD
is showing the start of a move higher as the histogram has moved over the zero line. ATR is decreasing, showing less volatility
which is a very common indication on market direction being long. The trend lines
show a clear stair step higher with the 1.29 handle being key to any upside move.
The next resistance level
comes in at 1.32, giving this trade a solid 300 pip upside. Just need a daily candle to close above to set up a buying opportunity.
The downside to this that oil
and CAD are correlated. So if oil
will go in the opposite direction. Just something to keep an eye on.