USD/CAD

Firstly, President Trump did a good job of talking down the US dollar at the end of last week. Jerome Powell provided dollar support on Tuesday and Wednesday and then Donald Trump affirmed the Fed's independence before undermining it on Thursday and Friday.

Secondly, last week also proved to be a good week for the Canadian dollar. There was a beat for the Canadian retail sales 2.0% vs 1.0% expected and the CPI data out on Friday 2.5%y/y vs 2.3% expected. Adam was also talking about the Canadian housing bubble crisis receding into the background too on Friday. Worth watching as Adam talks a bit generally about the Canadian economy.

Thirdly, The price of oil was supported after Saudi's OPEC governor revealed that Saudi Arabia was not about to flood the oil market with lots of supply. A higher oil price supports CAD. Greg reported that they said:

So, three reasons that USD/CAD is going to remain offered in the near term. Now let's move on to a technical look at USD/CAD for an intraday move so that we have a sentiment, fundamental and technical rationale for our trade.

Looking at the 1 hour chart there is one place where the technicals are converging. That is at the 38.2% fib of Friday's move which is also where the 100, 200 MA and Daily Pivot Point all meet. This is an obvious place for sellers to re-join the move down. However, if you prefer to have your stops anchored above Friday's pre-release CPI price for the CAD then you may favour a deeper pullback entry at the 50- 61.8% area to limit your risk.