Commentary on the USD/CAD

Forexmentor.com Forex Trading Price Action

The USD/CAD pair is holding its own – still trending up! The Governor of the Bank of Canada said recently that the Canadian dollar (loonie) had risen too far, too fast – not supported by fundamentals. The film industry is hurting because of the high Canadian dollar, and nowpressure is being brought to bear on the Governor (Dodge) to not raise interest rates. That would further exacerbate the problem. Gotta get out of Dodge.

A common sense trendline underneath price action on the daily chart for this pair clearly shows price action on the rise, with no let-up in sight. Either of two things have to happen now – price has to break the 30 EMA convincingly, or price has to retest the low formed by the hammer 17 candles ago on the daily chart. I’m still of the opinion that we’ve seen bottom on this pair. Only time will tell, but I’m betting I’m right, and have put my money where my mouth is.

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