Selling the Retrace in USD/CAD Again and Again

The USD/CAD has been really bearish since March, with the USD tumbling lower during this time, like there’s no tomorrow.  I have heard rumours that Texas is pushing to secede from the Unired States, in a Texit process similar to Brexit. If that is the case, then the USD has every reason to decline.

Crude Oil, on the other hand, has been increasing since April, one of the reasons being the weakness of the USD since March. As a result, the USD/CAD has been pushing lower continuously during this time, and we have been trying to make the most of this bearish trend.

We have been selling pullbacks higher, which have been great opportunities to go short on this pair, since they have faltered quite easily. Today we are seeing a retrace up to the 20 SMA (gray), which has been acting as resistance lately, which we then decided to sell. The retrace seems almost complete now, so let’s hope the USD/CAD reverses back down and the bearish trend resumes again.

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Skerdian Meta

Lead Analyst

Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.

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