JLS: USDCAD Long Target Zone 1.3100-1.4100 Still Valid
The long on USDCAD still valid as per previous analysis attached hereto, however the 1.3100 could be at risk and the risk could be mitigated.
The CAD will continue to be weakened by USD by their interest rate differentials, however the CAD will continue to be strengthened by the CHF, JPY, EUR, GBP, AUD and NZD by their interest rate differentials. The strengthening of the CAD by the CHF, JPY, EUR, GBP, AUD and NZD to put the 1.3100 at risk temporary, however this could be mitigated by placing long on CADCHF or CADJPY for similar portfolio to off-set the pressure on USDCAD.
It is possible for USDCAD to be pressured down to 1.2900 (estimation only) and to short USDCAD to hedge the long on USDCAD uncertain level of pressure. At such, by hedging the long on USDCAD with the long on CADCHF or CADJPY both will generate profits after completion on the temporary pressure on USDCAD.
The CAD will continue to be weakened by USD by their interest rate differentials, however the CAD will continue to be strengthened by the CHF, JPY, EUR, GBP, AUD and NZD by their interest rate differentials. The strengthening of the CAD by the CHF, JPY, EUR, GBP, AUD and NZD to put the 1.3100 at risk temporary, however this could be mitigated by placing long on CADCHF or CADJPY for similar portfolio to off-set the pressure on USDCAD.
It is possible for USDCAD to be pressured down to 1.2900 (estimation only) and to short USDCAD to hedge the long on USDCAD uncertain level of pressure. At such, by hedging the long on USDCAD with the long on CADCHF or CADJPY both will generate profits after completion on the temporary pressure on USDCAD.
Comment:
Comment:
The USDCAD pressured down to 1.3111 by today for 11 PIPs above the estimated ceiling 1.3100. The pair bullish to 1.3150 but the outlook of the risk is uncertain. Breaking 1.3277 could be assumed to risk free.
Comment:
Trade stopped