Following today's Royal Bank of Canada meeting and non action on the monetary policy front, there should be room for a CAD bounce. Given that rates were not reduced in the face of weaker economic data and capitulating oil prices (which may fall even further in the mid term), the market will most likely lock in profits and prepare to enter at better levels. Expect oil to bounce in the short term, which should also support a stronger CAD.
Comment:
This trade has gained almost 400 pips since it was posted. Expect consolidation around 1.4100 before continuation to 1.38s or a retracement between 1.42 and 1.43
