Another big CAD move on the data

It been many years since we’ve seen a major currency move like this at almost every data point, such is the focus on the Bank of Canada. This is a big move for a market that had already dialed down expectations after the BOC meeting last week.

We’re up testing the highs seen last week and that comes just below the 50.0 fib of the May 2017 drop.

USDCAD daily chart

USDCAD daily chart

The worry here is that the market starts to think that the prior hikes were a mistake, and that the BOC will go into reverse and start talking cuts. If that happens it will be a big egg on face moment for Poloz, and he’s up speaking later tonight at a parliamentary finance committee, so he could be questioned on it there.

I think this move is too big for the data that’s been delivered so I’ve taken a short at 1.2901 with a stop just abovethe 1.2916 highs last week, and above the 50.0 fib.

 

Ryan Littlestone

Psychedelic chartist extraordinaire. Have your shades ready.
Philosophy: “Don’t be a Dick for a tick”

Read how Ryan got into trading here
Ryan Littlestone

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