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Trading Outlook – USD/CAD

Jarratt Davis
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www.jarrattdavis.com

Originally updated: 07:30

Trading Bias: SHORT

Currency pair: USD/CAD

Current Sentiment: Bearish

In today’s trading session we will be focussing on selling opportunities on the USD/CAD.

Fundamentals:

Today I will be focussing on the USDCAD pair, this comes after commentary from the Bank of Canada’s Gov Poloz, where he said last month’s rate cut allows bank to take time to examine how the Canadian economy responds to oil price movements. Which has subsequently caused CAD strength across the board with many traders unwinding their rate cut bets.

(Bear in mind oil prices – if oil prices rally we can expect  the CAD strengthen given the CAD’s status as a commodity linked currency).

Technicals:

We expect this pair to fall during today’s session.

There is a decent level of resistance at the 1.2500 level which could provide trading opportunities should the price pull back. Look for the price to bounce off this level if it retraces back to it.

Remember to be aware of intra-day news as this can very often change the sentiment which makes our trade weaker. Look for any news that could be positive for this pair, which would change the sentiment to bullish.

Other Market Moving News:

Relatively quiet overnight session with the antipodean currencies being the main movers prompted by a better than expected Chinese PMI figure, which in turn helped the AUD rally.

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