Did USD/CAD just break its bearish trendline?
Strategy: USD/CAD Long
Yes it did. Oil is slowly selling off and reversing its recent bullish trend. The 5-6 high of 62.58 has since receded to below $60 and is slowly turning lower. The concern that low prices would knock out shale producers has been proven untrue and the glut of oil that has prices significantly lower than just a few years ago will continue. Price will slowly grind to the $50 area over the next several weeks. In addition, CAD economy is losing steam. On Wednesday Wholesale Sales numbers were a little weak. On Friday we will get Retail Sales and CPI number both of which will most likely show a weak consumer and little inflation. Similar USD numbers are also scheduled tomorrow and will have a similar result with the exception that cheaper gas will help the US consumer.
With that perspective the market realizes USD/CAD needs to reverse and USD strength needs to reassert itself.
Yes it did. Oil is slowly selling off and reversing its recent bullish trend. The 5-6 high of 62.58 has since receded to below $60 and is slowly turning lower. The concern that low prices would knock out shale producers has been proven untrue and the glut of oil that has prices significantly lower than just a few years ago will continue. Price will slowly grind to the $50 area over the next several weeks. In addition, CAD economy is losing steam. On Wednesday Wholesale Sales numbers were a little weak. On Friday we will get Retail Sales and CPI number both of which will most likely show a weak consumer and little inflation. Similar USD numbers are also scheduled tomorrow and will have a similar result with the exception that cheaper gas will help the US consumer.
With that perspective the market realizes USD/CAD needs to reverse and USD strength needs to reassert itself.
