Why I'm Going Short on USDCAD: Analyzing Market ConditionsKey Reasons for a Bearish Outlook
1. Economic Differences: The U.S. economy is doing well, showing strong growth, while Canada’s economy is struggling. This usually strengthens the U.S. dollar against the Canadian dollar.
2. Oil Prices: Canada’s currency is closely tied to oil prices. If oil prices stabilize or drop, it could weaken the Canadian dollar further, especially since Canada’s economy isn’t performing well.
3. Central Bank Policies: The U.S. Federal Reserve might lower interest rates, which could attract more investment into the U.S. dollar. Meanwhile, the Bank of Canada is likely to stay cautious due to weak economic data.
Given these factors, I believe there’s a good chance for USDCAD to move lower. I’ll be using probabilities to guide my short positions and manage risk effectively.
Feel free to share your thoughts and ideas in the comments below!
12M:
On the 12M timeframe, there is insufficient data available. Therefore, we will move to lower monthly timeframes to identify a valid range and look for FB mitigation.
1M:
1D:
1H:
