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It’s undeniable that the USDCAD is under heavy pressure and that the CAD is really enjoying the latest Oil rally. Add all of that to the USD bear market and we have a slam dunk short in the USDCAD.
You need to understand that this articles does not induce a bullish bias, at all, but we might start a bear rally from these lows giving us the opportunity to sell higher. So heads up!
If in fact the USDCAD rallies from these lows it would break with the immediate bearish structure fueling a momo rally to our sell zones.
Should this happen we need to keep our eyes on the 1.31 level which is a BIG zone of resistance dating back to October 2018. But the real sell zone in my eyes is the full previous support at the 1.31 level which would give us a awesome risk to reward ratio for the next bear leg.
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