I am tempted to buy USD/CAD here....
Canadian dollar has been rallying since early May largely on expectations that the Bank of Canada (BoC) would hike rates this year. Some expect the BoC to give a strong hint of a rate hike this month. USD/CAD has dropped from 1.3793 to 1.29 levels over the two month period.
In my opinion, BoC’s hawkish turn has been priced-in at least for the short-term. The daily chart below shows the RSI is oversold. The trade data released today favors USD.
The short-term moving averages – 5DMA and 10-DMA are seriously overstretched. The daily RSI has breached the falling trend line as well…
I expect USD/CAD to revisit 1.30 and then consolidate around the psychological levels… that would help 10-DMA catch up with the sharp drop in the exchange rate.
Trade: Buy around @ 1.2925 Objective 1.30 Stops below 1.2890
Canadian dollar has been rallying since early May largely on expectations that the Bank of Canada (BoC) would hike rates this year. Some expect the BoC to give a strong hint of a rate hike this month. USD/CAD has dropped from 1.3793 to 1.29 levels over the two month period.
In my opinion, BoC’s hawkish turn has been priced-in at least for the short-term. The daily chart below shows the RSI is oversold. The trade data released today favors USD.
The short-term moving averages – 5DMA and 10-DMA are seriously overstretched. The daily RSI has breached the falling trend line as well…
I expect USD/CAD to revisit 1.30 and then consolidate around the psychological levels… that would help 10-DMA catch up with the sharp drop in the exchange rate.
Trade: Buy around @ 1.2925 Objective 1.30 Stops below 1.2890
Trade closed manually:
Take profit @ 1.2985