USD/CAD breaks resistance
On Monday I made the case for a potential breakout in USD/CAD because a number of resistance bands are above and they could topple like dominoes.
Just now, the first domino fell as the double top at 1.3328 broke. That level represents the highs from November and earlier this month. The measured target of the break is 1.39 and I suspect we could get there quick because the October and September highs are so close.
Oil isn't doing anyone favors at the moment and surely producers now find themselves in a spot where it's too painful to hedge.
I think the Canadian market is asleep to the risks here with Canada much more levered to global growth than the US.
