Unlock Premium Data: Up to 50% Off InvestingProCLAIM SALE

Short Squeeze Towards 1.30 Ahead?

Published 26/10/2017, 11:37 am
USD/CAD
-
CL
-
DXY
-

Originally published by AxiTrader

USD/CAD had two major breakouts in the past 24 hours. The currency pair first cleared resistance at 1.2670, and earlier today the one at 1.2780.

The short-term outlook has turned positive following the recent price action, and a rally towards 1.2950 seems likely.

Chart

What has been supporting USD/CAD? The Bank of Canada showed its dovish side today, following two surprise rate hikes. The recent economic data out of Canada has been rather disappointing as well.

Another factor is positioning. Speculators have built Canadian dollar long positions over the recent months, but some were forced to cover them as the trend has turned. With the US dollar recovering and oil prices under pressure following another failure at $53 resistance, Canadian dollar longs could become increasingly nervous.

Chart

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.