USDCAD: Prepare for lift off

Trading μέσα στο εύρος τιμών 585-550
October 7, 2016
Με το βλέμμα του Γερακιού σε ΓΔ,ΜΥΤΙΛ,ΕΛΛΑΚΤΩΡ,ΤΙΤΚ,ΜΟΗ,ΔΕΗ,ΤΕΝΕΡΓ και στην τάση του ΧΑ
October 10, 2016

The resilience in USDCAD even after the rally in Oil above 50$ is remarkable. The Dollar strength is immense and what will happen if oil makes a top and reverses lower? For the last few weeks we have seen the triangle formation all around fx blogs and trading sites. But the fx pair has given several false break out signals that trapped bulls. This time I believe it is different and we are really breaking above the triangle pattern in a move that could eventually reach even 1.38. What is needed for this to happen? Firstly we focus today at the NFP numbers announced later in the day. A good number will boost Dollar and thus USDCAD will most probably move past 1.33. But what about oil. Oil price is giving several diverging signals that warns bulls to be cautious. There is no confirmed trend reversal in oil price yet, but if it happens, USDCAD will explode higher.

usdcad oil

I’m already short Oil and will be looking to buy USDCAD on good NFP numbers today. 1.38 is my target area while short-term support at 1.3150 and 1.3050 should hold otherwise we might see a bigger pull back towards 1.28-1.29.

Thank you for taking the time to catch up on my thinking.

Alexandros Yfantis
Alexandros Yfantis
Fascinated by financial markets, studied International Securities Investment and Banking in the UK, works as a Portfolio Manager in Greece and runs a technical analysis website. Enjoys travelling and spending time with his family and preparing for the black belt in Korean Karate.