USD could be due for a short term recovery since DXY has been supported for two months or more. An inspection of major USD pairs since DXY bottomed on 16 February 2018 reveals USDCAD and USDCHF to be early movers. USD long positions in these pairs could outperform others if DXY retraces higher from here.
USDCAD offers 5 price elements that strongly agree with each other. Combined, they offer a compelling high probability trade setup waiting for confirmation.
USDCAD at decade-long resistance-turn-support. What are prospects of breaking this level in conjunction with second rate hike? Retracement before that?
EURUSD, AUDUSD and NZDUSD print new 52-week highs, USDCAD new 52-week low to mark their strengthening against USD; terminates previous year-year trend.
Observations of USD strength on crude oil, cad, thoughts on possibility of future Fed rate hike. Also, discussion on selling climax spotted in Starhub.
DXY appears to be weakening and in danger of breaking out of channel. USDCAD is falling out of 4-month consolidation so WTI is concurrently strengthening.
4 charts WTI, Brent and USDCAD prints high probability patterns that point to further oil price correction. Any rally could be retracement setup for higher shorts. Plan accordingly.