The next major Daily (short term) support level to watch for the USDCAD. Watch for a rebound or a breakout. Looks like a great tradable level. A break below increases the chances of more downside.
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I have one question. How do you trade correlated instruments (like USDCAD and USOIL)? Do you pay attention to avoid excessive exposure and reduce correlated positions or just skip it and trade them like there is no correlation ?
jimnewman44
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FXC (CAD ETF) and USO (US Oil ETF - tied to WTI) ... go for broke! haha
Technician
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Mate, great question, in my view, correlation between crude and cad is much dominant on the a longer time horizon. So when trading very short term trades I give more weight to the technical evidence i have on the single instrument, especially that the correlation breaks in many instances. I will gladly post a chart soon about this correlation. Good luck..
jimnewman44
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My take: there's a descending triangle that will squeeze it out to the downside. Question is - how to play it in the form of an ETF?