USDCAD May Be Resuming Its Downtrend

I wonder if perhaps better than expected Canadian employment figures and higher oil prices didn’t combine with dovish Fed minutes out of the U.S. to help push the “loonie” higher over the past 24+ hours. Nonetheless, at the 1.3057 level, the pair’s departure from what had been a pronounced southern trajectory was beginning to stretch the limits of what is historically its typical deviation from an established day-to-day trend.

Since it is my understanding that the Canadian dollar is fundamentally weaker than the U.S. dollar at present, I have entered a short position with a target price of 1.2977, which looks to be a zone of mild resistance, and is the minimum distance I need to shoot for to roughly equal the risk I am facing with my stop loss set at 1.3076.

Trade closed: target reached:

Unfortunately, my timing was off and I was stopped out of this trade, making it necessary to re-enter a short position a second time. However, my previous comment about the weakness of the loonie against the U.S. dollar was nonsensical, since this move would have had nothing to do with that.