DislikedWe gotta be at the bottom of the bottom here. It has a very slight chance of tagging 60, but I doubt it.Ignored
The problem with the long position is there currently is not many fundamentals to back it up except for a risk off meltdown.
CAD seems to be performing well for two reasons. #1 A bit of risk-on trading back into energy and materials #2 Canada is growing a reputation as a safe haven for slow steady growth.
Unless there is a massive move of cash into US housing or manufacturing... the investment cash is going where there is growth with almost no surprises (Canada/Germany... too bad germany has that darn euro). The pair is definitely low, but oversold to me means it's moving down irrationally, and so far the fundamentals make sense for this pair to move lower.
PS. If you take a look at AUD/CAD... the past two/three weeks suggest the movement is more related to #2 rather than #1