USD/CAD — Bullish Momentum Regained

The US Dollar looks set to make further gains against its neighboring country’s currency, the Loonie. In the last 2 weeks, the market has come out of its 2-week range by breaking to the upside, achieving a successful auction which found broad-based acceptance by the end of business in NY. The resolution of the range comes packed with a plethora of positives. The slow stochastic is coming out of oversold territory, the most heavily traded level was trapped behind the price close, the shape of the 5DMA is telling us the momentum is unambiguously bullish, the 5-DMA of the US vs CA 5-year bond yield spread is gathering steam (see blue line), while Oil prices are on a slant again. Buy on dip campaigns should be very active in this market. Watch today’s vol emerging off CA retail sales.