Top
New York  London  GMT  Tokyo  Sydney 

Four trades for 2012: #4 USD/CAD to hit 1.12

By   || December 30, 2011 at 18:20 GMT
|| 1 comment || Add comment

I am stalking this trade like a tiger. Watch the wedge on the daily chart in USD/CAD. When it breaks, expect a 600-700 pip move. For confirmation, check the similar chart in copper.

My bias is to the upside because my base case for 2012 is disappointing growth. A multitude of political pitfalls remain and the commodity bull market has gone limp.The BOC has room to cut rates while the Fed is reluctant to implement QE3.

That said, I’m keeping an open mind. Corporate profits have been solid and the US economy could pull it together for 3-4 months. That would send USD/CAD to 0.96/0.97. Either way, I’m going with a break on the chart.

Share and Enjoy:
  • RSS
  • Facebook
  • Twitter
  • LinkedIn
  • email
  • Print
  • Add to favorites
  • del.icio.us
  • Digg
  • NewsVine
  • StumbleUpon

Add a comment

One Response to “Four trades for 2012: #4 USD/CAD to hit 1.12”

  1. Mephistos on December 30th, 2011 19:21 GMT

    Hi Adam,

    I like this trade :D , will be joining you when time comes… I could even buy some now or next week, as we’re near the low end of the range…but might just leave it for the moment. Otherwise, I have nearly any trades going on, covered silver short yesterday just after it bottomed :D and now just looking forward for the new year to come.

Bottom