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USD/CAD rallies for fourth day into resistance

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USD/CAD has continued higher for a fourth day, but I suspect this is part of a countertrend move around a larger move lower.

Market positioning his extreme levels of record short exposure to CAD futures last year, and many of these bears refused to return despite USD/CAD continuing higher. The sharp reversal lower from 1.48 also suggests we have seen a significant top on the pair.

I am now seeking evidence of a swing high around the 1.4386 HVN (high-volume node) and for momentum to realign with the sharp selloff witness at 1.48.


Matt Simpson, Market Analyst at City Index and Forex.com

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