Commentary on the USD/CAD swoon in price

Forexmentor.com Forex Trading Price Action

The swoon in the USD/CAD pair may be coming to an end. We’ve had quite a tumble since the robust jobs report came out. Such data would encourage the Bank of Canada to leave interest rates where they are, and not lower them any time soon. That report caught everybody off guard, including me. That said, we have positive divergence on the 4 hour MACD histogram, and positive divergence on MACD itself on the 1 hour chart. Price is very much oversold, and ready for a rebound.

I am not yet ready to call this a buying opportunity, as I am keeping a close eye on oil prices, and the futures chart for the Canadian dollar. I see this week as being pivotal as to where the USD/CAD pair is headed next. Stay tuned folks. I will let you know the minute I get a sense as to what to do next. In the meantime, I am still fully invested.

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