USD CAD afternoon trading action suggests the possibility of a closing price reversal bottom.
The USD CAD is picking up a little to the upside this afternoon. Choppy trading in both the stock market and energy complex is leading to indecisive trading. Investors could be becoming concerned about the rapid rise in the Canadian Dollar and its effect on Canadian exports and economic growth.
Technically this market is in a position to form a daily closing pricereversal bottom. A close over 1.0657 will form the reversal but itwill take a follow rally tomorrow to confirm the move. This type of pattern suggests a 2 – 3 day rally or a minimum 50% retracement of the last break.