Fundamental Analysis
USDCAD rallied significantly on Friday due to the disappointing retail sales report from Canada. We can see that the Canadian Dollar has given up all it gained when Bank of Canada delivered as surprise interest rate hike in September.
Technical Analysis
The pair is currently at a resistance zone. A break above this zone will send the pair much higher. In fact it looks very much likely that it is going to happen. Bank of Canada is not so hawkish. Feds are Hawkish. This, coupled with the balance of data coming out of these countries, the pressure is on the upside.
Therefore our preference is to buy the pair at this time around.
