USD/CAD nears the lows of the week
The USD/CAD trade has been all about politics and global sentiment lately. NAFTA negotiations have jarred it, along with the spat with Saudi Arabia and the broad risk trade has been a driver this week.
What’s the chart say?
The main feature on the one-month chart is the top at 1.3177. That area was tested two or three times this week and held up strongly, in a sign of a potential top. But to the downside, the pair is going to need to clear 1.3050 to get any momentum.
That leaves traders in a bit of a pickle. If you got a good fill close to 1.3100 on the way down, there’s some value in holding and hoping for a break lower and a drop down to 1.3000 and below but the risk/reward isn’t great in putting on something at these levels.