Recap Was consolidating until BOC surprised the world with a rate cut. Surprise breakout target of 200% range expansion tagged by the end of the week. Closed the week above Y+4 and near week high.
Outlook Canada is an exporter of natural resources and rate cut does not improve its competitiveness in those markets even though Loonie took a direct hit. Long term negative impact on economic growth will be felt in 6 months.
More upside likely this week as many shorts are trapped. 1.26 is next mild resistance zone that may put a pause to the run.
Lawrence's Comment
Recap
Got the retest of Y+1 early in the week. Y+1 breached easily points to more upside. Previous week close acted as support on pullback and voila we got Y+2. ...
USDCAD Jan 26 to Jan 30 Outlook
Lawrence’s Comment
Was consolidating until BOC surprised the world with a rate cut. Surprise breakout target of 200% range expansion tagged by the end of the week. Closed the week above Y+4 and near week high.
Outlook
Canada is an exporter of natural resources and rate cut does not improve its competitiveness in those markets even though Loonie took a direct hit. Long term negative impact on economic growth will be felt in 6 months.
More upside likely this week as many shorts are trapped. 1.26 is next mild resistance zone that may put a pause to the run.
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