USD/CAD daily short

Dollar weakness appears to the be the theme this week, with the dollar index down by more than 3% this year, and with yields dropping, it appears last year’s dollar rally is fizzling out.
This is a downside continuation trade, with oil prices relatively stable, I will look for selling opportunities on this pair.

USD/CAD Daily chart

Price has made a lower lower low and high ( shown in black lines), the high has pulled back to the 61..8 fib retracement level, also role reversal resistance, shown in red, and furthermore the ma''s have crossed to the downside.

USD/CAD H1 chart

Price is opening the day below dpp, creating a lower low, shown in black. I will look for an entry upon a pull back to either dm2, or dpp, with targets around dm1-ds2.

2 thoughts on “USD/CAD daily short”

  1. Thanks bud – just label your daily chart – also noticing the confluence of support on daily with price having come off the MPP and the fib extension sitting just under MS2. With Trump pulling out of the Pacific Trade deal and NAFTA being next, I wonder how this is going to impact CAD…

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