USD is short-term overbought
USDCAD is perfectly moving in this up road channel on its way to recovery. Although we've seen a lot of bullish action lately and... this needs a correction before continue going up.
However there are two scenarios here, one of them would prove that USD is very unpredictable currency.
1) USDCAD breaking the upper bound of the channel and make another leg up; in this case the volatility would increase extremely and both buyers and sellers would see traps in their way to profit. So if we see a bullish breakout, I would not touch the pair under any condition.
2) The most expected move though is to be a leg down to the lower bound of the channel because there's a gap (this is a big gap) that has to be filled before continuing up with the recovery process.
My long-term sentiment for DXY (US Dollar Index) is bullish, but my short-term sentiment is now bearish.
Plan ahead!
However there are two scenarios here, one of them would prove that USD is very unpredictable currency.
1) USDCAD breaking the upper bound of the channel and make another leg up; in this case the volatility would increase extremely and both buyers and sellers would see traps in their way to profit. So if we see a bullish breakout, I would not touch the pair under any condition.
2) The most expected move though is to be a leg down to the lower bound of the channel because there's a gap (this is a big gap) that has to be filled before continuing up with the recovery process.
My long-term sentiment for DXY (US Dollar Index) is bullish, but my short-term sentiment is now bearish.
Plan ahead!
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