- You don’t have to be a genius technical analyst to glean from the long-term charts that this pair is still quite heavily oversold and has plenty of room to retrace, perhaps even to 1.34;
- This will explain much of the very strong bullish sentiment in the marketplace and some huge buying interest appeared out of the woodwork last week when this pair touched 1.0910/20;
- The daily chart is solidly bullish and I see no technical reason to abandon the buy-dip strategy;
- The one big dissenting voice in my view is the Precious Metals which are making a strong bullish statement and that is usually pro-CAD;
- We also need to pay attention to EUR/CAD resistance at 1.5455, this is an important level.
I tried selling this pair last week after the big move higher in Silver but I got stopped out by the vicious reversal. Any pair that reacts so violently is telling us something and I think that USD/CAD still wants to go higher. Buy any dips onto the 1.09 handle with stops directly below 1.0900.
Keep an eye on the Metals and the CAD-crosses for times when it’s better to reduce long USD/CAD positions.