USDCAD today held strong above 1.40 while oil closed below 30$. If price continues past the D1 21 EMA we could see a retest of 1.43 and therefore look for opportunities to join the trend. We will definitely be keeping a close eye on oil inventories tomorrow, bad data might be all the USDCAD needs to push up higher past the 1.411 or the 21 EMA.
On the H4 price closed above the 21 ema which is a good sign of what is possibly to be expected tomorrow.
Since it’s the beginning of the month I like to look at the bigger picture, and looking at the monthly we can see that USDCAD had a major rejection of price at 1.47. Is todays move simply the beginning of a retrace to last months rejection price for the down trend to resume? Something to think about, and to look out for.