Pretty soon it will cease to trade....
"A little bit softer now. A little bit softer now. A little bit softer now..."
We alll remember the "Shout" scene from the movie "Animal House"....
Well I feel like the USDCAD price action is the equivalent....
"A little bit narrower now. A little bit narrower now. A little bit narrower now....."
The USDCAD is getting more and more confined between trend lines.
Eventually - just like in Animal House when the "little bit softer now", become "a little bit louder now", we will have a "a little bit wider now".
ON a break, of the trend lines is not the recipe for a race in the direction of the break. Yesterday, the pair fell below the lower trend line for the 2nd consecutive day and FAILED, but at least we know the risk. Continue to look for the breaks to find resistance or support at the extremes - until that catalyst or push that really finds buyers or sellers.
Oil prices are down today which is helping the upside (Crude oil is down 2.68 at 44.69 currently).
