I want so badly to get short USD/CAD for another leg down in the pair – and am watching the price of oil here this morning, as CAD will often correlate.
Regardless of the near term squiggles and “apparent strength” in USD, my eye on the price of oil suggests it’s going higher. Pulling a daily chart of “/CL” Light Sweet Oil Futures – I see our friend “the hammer” made an appearance on Friday suggesting that buyers had stepped in and that downside pressure would subside.
Short and sweet here this morning – but CAD looks strong against several other currencies. Should we see the price of oil move higher “getting long CAD” looks like a very good trade.
Otherwise – we still sit patiently awaiting moves in USD – Question being – Is the recent strength a sign of something new – or merely a “pop” before USD continues lower?
We will get our answer by close tomorrow.