Short-Covering Rally Starting in USD/CAD

Negative news from the U.K. regarding its debt rating is leading traders to seek the safety of the U.S. Dollar overnight.  This is helping the U.S. Dollar start a short-covering rally versus the Canadian Dollar.

A bearish report from Standard & Poor’s regarding the state of the U.K. debt rating led traders to seek the safety of the U.S. Dollar overnight. This news may cause a shift in investor sentiment today that could trigger a short-covering rally in the U.S. Dollar versus the Canadian Dollar.

The USD CAD hourly chart is indicating a change in trend to the upside. If the bottom at 1.13467 holds on a retest then look for this pair to begin a retracement rally to 1.15800 to 1.16350.

James A. Hyerczyk has been actively involved in the futures markets since 1982. He has worked in various capacities within the futures industry from technical analyst to commodity trading advisor. Using W. D. Gann Theory as his core methodology, Mr. Hyerczyk incorporates combinations of pattern, price and time to develop his daily, weekly and monthly analysis. His firm, J.A.H. Research and Trading publishes The Forex Pattern Price Time Report... More