There are actually several reasons for long this pair (even if I am holding my long USDCAD position, which i have moved my stop to BE lvl)
1. BoJ is the most dovish central bank for now, while BoC is the surprisingly most hawkish (with the plummeting crude and housing market problem domestically). This is also the reason why USDCAD dropped so much these weeks.
2. For today's inventory data, if you don't want to use crude oil futures to bet, putting your money on CAD should be a safer choice (small notional compared to crude)
3. The market main theme is still prefer risk. JPY is going to underperform.
Techs:
1. Testing base line and support area here
2. slow stoch looks extremely attractive on 4hr chart (not good on day-chart tho)
So I would start with small position right now. If inventory data is really bad and crude plummet again, i would find a level to increase my position a bit. This could be a potential mid-term trade.
1. BoJ is the most dovish central bank for now, while BoC is the surprisingly most hawkish (with the plummeting crude and housing market problem domestically). This is also the reason why USDCAD dropped so much these weeks.
2. For today's inventory data, if you don't want to use crude oil futures to bet, putting your money on CAD should be a safer choice (small notional compared to crude)
3. The market main theme is still prefer risk. JPY is going to underperform.
Techs:
1. Testing base line and support area here
2. slow stoch looks extremely attractive on 4hr chart (not good on day-chart tho)
So I would start with small position right now. If inventory data is really bad and crude plummet again, i would find a level to increase my position a bit. This could be a potential mid-term trade.