USD/CAD: Still looks vulnerable to me
Once again I’ll start with the acknowledgement that my track record on the CAD is rather poor and I got stopped out of my short position yesterday morning (but maybe I’m due 🙂 ). The market is undoubtedly short of CAD but on the other hand the reaction from 1.0910 did suggest that the market is still happy to buy USD/CAD. Nevertheless, with metals turning bullish and the AUD starting to show some resilience, I still think the Loonie is ripe for a downside clean-out. There is technical; resistance close-by near 1.1110/20, so keep a stop above there just in case you are tempted by the contrarian trade.