When USD/CAD dipped to 1.0200 and just below there were bids aplenty from big players and Sovereign names. EUR/USD also didn’t feel particularly comfortable below 1.20 and has been working through it’s ‘oversold’ status for the past few weeks. All of this adds up to some serious short covering in EUR/CAD. Other pairs like GBP/CAD are also looking like they’ve had enough downside with a possible inverted H&S forming.
Big players do not like going on their extended summer break with large positions still in place and that’s another reason why we’re in this short-covering phase.
