Loonie – The Strong One Among the Commodity Currencies
Eric Furstenberg • 1 min read
Besides the euro which has performed really well following Mario Draghi’s speech earlier today, the Canadian dollar is also doing really well at the moment.
The most prominent commodity currencies (CAD, NZD, and AUD) are all doing well at the moment but the Canadian dollar is definitely the strongest. Here is a screenshot of the USD/CAD:
USD/CAD Hourly Chart
While the USD/CAD is technically still range-bound, there is another Canadian dollar pair which is not. You may remember that I recommended watching the CAD/JPY for long opportunities yesterday. Well, this pair is currently printing higher highs and higher lows. Exactly what we’re looking for to confirm a healthy uptrend. Let’s look at an hourly chart of this pair:
CAD/JPY Hourly Chart
Here you can see that the Canadian dollar has been performing much better against the yen than against the dollar.
While both the USD/CAD (short) and the CAD/JPY (long) look like good prospects when analyzing their daily charts, the CAD/JPY looks appealing on the smaller timeframes as well.
With all that said, enjoy the rest of your trading day and don’t forget about the FED Chair, Janet Yellen’s speech later today at 17:00 GMT.