USD/CAD: Short-Term Buy (Close Position)
The pair almost reached our target price last week, but it turned lower from just 15 pips of the desired price level. The Dollar failed to gain ground on the other majors, and although the position is still positive, the weak reaction to the recent fundamental developments (the drop in the price of oil, today’s miss in the Canadian Ivey PMI) made us exit the position slightly above our entry price, to prevent the position from turning negative. The long-term trend-line now looks to be in danger, and a correction in the price of oil could trigger a move below 1.34, with a re-test of the 1.3385 level now being likely.
USD/CAD, 4-Hour Chart Analysis