Overnight we saw some minor signals in AUD/CAD and CAD/JPY which continue to point towards additional CAD strength. As I’ve maintained for a while now, the market is overly short of CAD at the wrong levels and I’m expecting a clean-out (as soon as that black swan appears 🙂 ).
The broad sideways action between 1.0750/1.0950 should hold in USD/CAD, giving me an excellent chance to build a strong short position. (Break above 1.1100 and I will exit the strategy).