With the world reopening, Canada will keep bringing in those black gold profits thus strengthening the CAD relative to the USD, which gaining power due to being the financial "central" currency.
A second wave of Covid-19 seems to be less likely day after day and this will help a lot to boost consumer confidence which goes hand in hand with consumer spending. So, we can expect a good recovery in general businesses overall, pushing up the major indexes like US30, NAS100 , GER30 etc which are usually correlated, positively, to pairs of the type XXX/USD, this mean, if one major index goes up, so are the other major indexes and so are the major pairs!
This being said, if XXX/USD goes up with a overall economic recovery, pairs like USD/XXX should go down and this brings me to USDCAD .
USDCAD used to roam the area between 1.24 and 1.36. As of right now we are on a descending triangle of the major timeframes.
A break from this triangle to the downside, could push us towards 1.36 area over the next few weeks / months.
I am personally looking for this break to the downside, I have intentions to hold a position for quite some time on this one.
A second wave of Covid-19 seems to be less likely day after day and this will help a lot to boost consumer confidence which goes hand in hand with consumer spending. So, we can expect a good recovery in general businesses overall, pushing up the major indexes like US30, NAS100 , GER30 etc which are usually correlated, positively, to pairs of the type XXX/USD, this mean, if one major index goes up, so are the other major indexes and so are the major pairs!
This being said, if XXX/USD goes up with a overall economic recovery, pairs like USD/XXX should go down and this brings me to USDCAD .
USDCAD used to roam the area between 1.24 and 1.36. As of right now we are on a descending triangle of the major timeframes.
A break from this triangle to the downside, could push us towards 1.36 area over the next few weeks / months.
I am personally looking for this break to the downside, I have intentions to hold a position for quite some time on this one.