EUR/USD is a great example of an illiquid flow-driven trade to fade but that’s in the past now.
A fresh candidate is USD/CAD. The 100-pip rise in US trading if fishy, to say the least. The gains in oil today are the only fundamentals driver and that is a USD/CAD negative.
As always, the timing is everything. The cycle high of 1.0737 is only 20 pips away and a break could inspire the kind of blow off we saw in the euro today. The clock is running out on the week but it’s something to watch for when the market re-opens.
