Quick look: Long opportunity in USD/CAD

Canadian currency’s strong correlation with oil remains intact. Brent prices failed to tear through offers around $41 and trimmed gains.

Accordingly, USD/CAD moved off from near March 9 low of 1.3228. This is the level that has been challenged yesterday but remains as a support.

Plus I also see bearish price-RSI divergence on the 4-hr chart. This coupled with strong support at 1.3228 tells me, the CAD may appreciate today, taking the USD/CAD higher to 1.3392 – 1.3477 (falling trend line resistance)

USDCAD H4 (03-11-2016 1809)

 

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