Oil continued higher today and after the U.S. session got underway, the DXY backed off its highs as the equity markets moved higher. A short was taken in the USDCAD risking 25 pips for a potential 55 pips to our daily target at 1.2516. An earlier long trade in the CADJPY was also taken (not shown) as the Canadian dollar was the strongest currency and the Japanese yen was the weakest currency of the majors.
The USDCAD moved progressively lower but not with the momentum I had expected – given the strength of the CAD today. This pair tends to become quite sticky around figures and mid-figures – often reversing. As the pair penetrated the 1.2550 level and immediately came back, the trade was closed for modest pips.
If oil continues higher, watch the 1.2500 figure, 1.2450 and especially the 1.2420 levels to the downside.
Good luck with your trading!