Canadian Dollar Looks To Test Parity
My advice last week to stick with the com-dollars proved prudent as they continued to gain support. My short USD/CAD position was profitable as I booked over 100 pips in profit following today’s spike low. Potential remain to test parity and a pullback could be another opportunity to get short. However, I think the risk reward at this point will keep me on the sidelines. Markets still seem reluctant to test the monumental psychological barrier with 1.0100 appearing to be the battle ground. A bullish rally to the 20-Day SMA at 1.0312 would keep the bearish trend intact and could come before an ultimate test of parity, if we start to see a reversal develop. Strong retail sales and accelerating inflation helped make the case for more “loonie” support making a long trade at this point a risky proposition.
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