The last couple sessions the battle around the 1.3070 level in the USDCAD has been fierce. Traders know this is the long term trend line dated from 2012 till present.
The USDCAD rallied above the 1.3500 level following the BOC rate decision, and the pair looks to have broke out.
The USDCAD has a longer term inverted head and shoulder’s pattern in play.
Oil went into free fall in mid-2014, experiencing a relentless bear move which saw oil price drop by over 70%. US shale producers turned out to be the tipping point in terms of the global supply glut. This, combined with a decrease in global demand, proved to be an unstoppable force that lasted for over a year.
The USDCAD will apparently close the week below the 200DMA.
The USDCAD rallied to new highs for 2018 as crude oil pushed below the $47 level today.
2018 is nearly upon us and the past year was certainly full of interesting events. Potentially dangerous political events in the EU – such as the French & German elections and the Catalan independence referendum – were safely navigated.