Both benefit from a lower usd and
From Trump’s apparent softer stance towards Nafta . Opec joined the oil currency positive narrative in calling to keep the production cuts in place over the weekend and last but not least the markets are in the midst of a rebalancing act out of parts of their USD holdings. I’ve been accompanying the move lower as the articles came out mainly in USDCAD as we held well below the 1.2490 break and 55 H4MA @ 1.2481 last night. I took the best part off in the 1.2400/28 congestion zone for some 50 pips and ahead of the next major 1.2387 support, which is the 63.8 fib of the Sep-Dec rally. I will re-enter short if we see a move back into the 1.2470/90 area with a stop above 1.25 (barring disruptive comments) . A break under 1.2387 should see 1.2261 (76.4% fib of the same sep-dec rally) on the cards and me adding to my small shorts again. That would roughly coincide with USDMXN’ next support at 18.75, which I use as pretty decent proxy barometer for CAD when it comes to oil and Nafta taking the stage.