Will patrons be dealt yet one more blow?
Value is now leaning in opposition to the trendline help that has helped to maintain the upwards momentum on monitor for USD/CAD since October. A break under that might be a severe blow to patrons’ confidence and conviction and can open up a transfer in the direction of testing 1.3320 after which help from 1.3290-00.
The greenback is experiencing a tricky time throughout the board however much less so in opposition to the loonie to begin the day. I reckon the technical degree above has one thing to do with that as patrons are placing up a protection at that degree.
Oil is up by 1.eight% on the day presently so that can proceed to maintain downwards stress on the pair alongside greenback weak point following Fed chair Powell’s dovish remarks on Friday. Let’s have a look at if sellers can discover a approach to break the upside momentum and open up an prolonged vary for the pair within the session forward.
For now, danger ranges might be simply outlined and restricted in the event you’re seeking to commerce that break or counter-trade it as properly. All the time keep in mind one of many less complicated guidelines in buying and selling: Threat slightly to make greater than slightly.