USDCAD: The BoC Effect
Fundamentally:
In addition to not lowering rates, the Bank of Canada was dovish. If they maintained rates and were hawkish, then I would probably take a slightly different stance.
But, so far, USDCAD is a short for me because the BoC maintained rates and did not lower them. In fact, the BoC mentioned that commodity prices were a problem for them. Lowering rates for now would hurt their economy. Also, they just had a presidential election; it is best to wait until there is an actual budget by the new presidential party to do anything.
I think that all expectations of a rate cut were burst. Now, people can hold it as an "investment" in the USD, or they can panic out. We shall see what unfolds.. hhmmm....
This was a good decision by the BoC. If oil does stabilize from here on out, this should help shorts gain momentum.
Technically:
Monthly: We are at key resistance.
Daily: 10 days of rallying with no end in sight. Those daily rejection candles may be signs of dissipation of the ride up:
intraday: Waitig for lower lows:
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