Loonie: First test 1.400, then bounce, if not, next step is 1.36
The drop of UDSCAD mainly is contributed by two reasons:
- BOC refused to cut rate and shift hard decision to government to use fiscal policies than monetary policies.
- The recovery of oil.
However, we can't ignore the fact:
+ The imbalance between Supply and Demand of Oil is stil exist.
+ Overall Canada economy is weak.
Hence, the fall of USDCAD is not stable.
The greenback is still very strong, that why I like to buy in dip than SELL U/C.
Look at on the chart, 23.6% Fib reracement is at 1.400, I expect U/C will fall to this level then bounce back.
We should consider buy at 1.4000 , if not, USDCAD probably falls to 38.2% Fib retracement at 1.3600. It could be at key ascending trend line I draw on the chart, but this is the worse case.
- BOC refused to cut rate and shift hard decision to government to use fiscal policies than monetary policies.
- The recovery of oil.
However, we can't ignore the fact:
+ The imbalance between Supply and Demand of Oil is stil exist.
+ Overall Canada economy is weak.
Hence, the fall of USDCAD is not stable.
The greenback is still very strong, that why I like to buy in dip than SELL U/C.
Look at on the chart, 23.6% Fib reracement is at 1.400, I expect U/C will fall to this level then bounce back.
We should consider buy at 1.4000 , if not, USDCAD probably falls to 38.2% Fib retracement at 1.3600. It could be at key ascending trend line I draw on the chart, but this is the worse case.
