USD/CAD has continued higher for a fourth day, but I suspect this is part of a countertrend move around a larger move lower.
Market positioning his extreme levels of record short exposure to CAD futures last year, and many of these bears refused to return despite USD/CAD continuing higher. The sharp reversal lower from 1.48 also suggests we have seen a significant top on the pair.
I am now seeking evidence of a swing high around the 1.4386 HVN (high-volume node) and for momentum to realign with the sharp selloff witness at 1.48.
Matt Simpson, Market Analyst at City Index and Forex.com
Market positioning his extreme levels of record short exposure to CAD futures last year, and many of these bears refused to return despite USD/CAD continuing higher. The sharp reversal lower from 1.48 also suggests we have seen a significant top on the pair.
I am now seeking evidence of a swing high around the 1.4386 HVN (high-volume node) and for momentum to realign with the sharp selloff witness at 1.48.
Matt Simpson, Market Analyst at City Index and Forex.com
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.