It is not good to come to any conclusion and make definitive arguments about the price action during the wee hours of a new week, but the price action is really appealing here. When everybody is long USD/CAD then the correction is inevitable. Besides USD/CAD has ample room for the correction without jeopardizing the up-trend. Unless it starts closing below 1.32, there are always chances for USD/CAD bull resurrection.
Short term strategy is to sell any bounce towards 1.37 and expect initial correction up-to 1.34 – 1.35. Again, oil is going to play major part in the sentiment shift. But even though USD/CAD and Oil prices are inversely co-related, don’t confuse our oil trading strategy with currency because, in oil trading, just getting 20 ticks will make your day. So even if Oil is going up, we are shorting it at specific resistance levels to get those high-probability pips because fundamentally we are not confident about Oil’s long-term sustainable up move.
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