Making Money On USD/CAD

We all know USD/CAD was quite volatile recently, dropping to 0.9010 in the end of October and rebounding to 1.0214 in early December covering almost 1200 pip range.

Employment report last Friday (see details here) came way better than expected, 43K jobs were added vs 8K expected. Although the Bank of Canda cut its rates to 4.25% on December 4th, based on decreased inflationary pressure I think there is still some strength in the CAD as the employment report showed.
Short term resistance is at 1.0085, I have a few sell orders at these levels. My profit target is 0.9910 (10 period daily EMA).


Comments are welcome,
Steve

Something to consider is OIL. the price of oil is starting to weaken. This is normal at this time of year as seasonally the price of LSCrude drops in the fall and picks back up in early spring. Futhermore the COT report from the CFTC alst week showed that institutional money dropped in longs by 6.8% and dropped shorts by 2.2%, the net difference favors the shorts. It may not take effect in the short term, but overall net positions by the big money is on the short side and eventually price should follow. So weaker oil prices = weaker Loonie. End result USD/CAD..Long! Obviously this isnt due to a strong dollar, just a correcting/weakening Cad Loonie, in the short term anyway

Any big news suprises could change the landscape quite dramatically..on a dime, so be prepared.

Northpro

Today's Housing Stats should show another big quick run on CAD, just like last Friday or even more. Prepare for at least 100-120 downmove.

That's a lock, IMO.

I am short at 1.0182 my target is 1.0080 area, were I would lighten my position. I think there is room for continued down move to .9980.

From ther I would look to get long for a push to the 1.03 area. Will be keeping a close eye on data out next week.