Short term
Trade view / 24 May 2016 at 15:11 GMT

#SaxoStrats. UPDATE: Removing long USDCAD position

Head of FX Strategy / Saxo Bank
Instrument: USDCAD
Price target:
Market price:
Saxo Strats banner

The rapid fading of the Canadian dollar's recent oil-driven rally combined with a resurgent US dollar on the back of a blast of Fed hawkishness prompted us on Friday to set up a long USDCAD position pointing to an objective zone between 1.3300 and 1.3350.

Management and risk description

We are now closing this position for slightly better than breakeven as we don’t like the price action and the massively risk-on stance in the market that could suddenly favour commodity currencies if the Bank of Canada proves complacent/non-dovish at its meeting tomorrow.

— Edited by John Acher

Non-independent investment research disclaimer applies. Read more
Market Predator Market Predator
Hello Mr. Hardy, thanks for your #SaxoStrats update. I'd like to ask you, why could be BOC non-dovish? I think weak Loonie is good for local economy, isn't it? So maybe happy BOC too....
Btw how to explain positive correlation between oil and usdcad? This is something new for me. So even today market likes commodities (Oil UP) BUT usdcad UP too! I'm confident we might test SMA200, because of 4 months down trend and FIB levels 38.2 equals around 200SMA (1.3350) and then possibly go south :-)
Market Predator Market Predator
Mr. Hardy maybe you were right yesterday with Loonie :-) I entered usdcad at 1.2915 (edge of Wk channel + 50day SMA in my MT4 account), very tight SL.


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