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 surges USDCAD will go in the opposite direction. Just something to keep an eye on.
Thanks
Zaibatsu FX
USDCAD
USDCAD
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 surges USDCAD will go in the opposite direction. Just something to keep an eye on.
Thanks
Zaibatsu FX
USDCAD
USDCAD