Chart Of The Day: USD/CAD

 | May 03, 2021 06:26PM ET

The last couple weeks I had (wrongly) tried to play the long side of the USD/CAD until the Bank of Canada started to taper bond purchases, which allowed CAD to push USD/CAD to new trendline. Combine the central banks action with a strong stock market and "risk taking" euphoria of the capital markets, this could send the pair below the 1.2200 level near term. Channel support and the 161% extension at 1.2186 seems like a viable near-term target while below the 1.2366 level.