USD CAD went straight up today 175 pips into 12 year (level) highs. Two questions need to be answered. Where is the top and when is the big correction going to start. The story seems to be right: USD is stronger and CAD weaker. Crude oil prices and commodity prices have gone south and continue to exhibit weakness.
Anyone who follows this pair has seen a major change in character. Lately this pair has been fairly volatile and has traded in an ever widening range.
We are monitoring this pair for signs of weakness and the beginning of a major correction. We expect some back and forth rangy volatility as this pair looks for its top tick.