USD/CAD: Chart Of The Day
Blake Morrow | Sep 16, 2020 05:51PM ET
The "base" that USD/CAD is building since we broke the downtrend line a couple weeks back is an inverted head and shoulders pattern. The neckline is at the 1.3260 level. What also should be noted, the crude oil market has rallied more than 9% this week, which has had no downside impact (strong CAD) on the pair. This is interesting as crude oil may find resistance near the $40.50 level, which could allow for some CAD weakness.
Bottom line: Lack of downside momentum in the pair may ignite some short covering above the 1.3260 level, and especially if we break the June 10th lows of 1.3315.
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