USDCAD - Correction or Continuation?
The recent momentum against the USD has been fierce. The CAD has gained 10% since in just a few short months and is the best performing G7 currency. I believe its coming to a pause, even with the US Federal Reserve today adding pressure to the USD. If the upward sloping trend-line breaks, look for hooks back before continuation lower. There are many factors which could cause the dollar to continue sinking next year or two, however, I think global risks will support the USD. The tricky aspect is to not become a victim of a "falling knife", so timing is crucial. Expecting a bounce and correction; risk management is prudent.
If oil prices spike due to geopolitical concerns and stays elevated above $55, the CAD will likely see 1.16 and potentially 1.10; these are very long term projections and good buying zone opportunities.
If oil prices spike due to geopolitical concerns and stays elevated above $55, the CAD will likely see 1.16 and potentially 1.10; these are very long term projections and good buying zone opportunities.
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