I’m starting to suspect oil settlement flows are behind the drop in USD/CAD. The sales usually start around the 25th of month and continue until month end. Liquidity has been poor this month and there is no fundamental catalyst for the fall in the pair to 1.0953 from 1.1020 a few hours ago.
Technically there isn’t much support on the chart some buyers could be camped out at 1.0950. In any case, oversold indicators are flashing some short term warning signs with the hourly RSI at 18.
USDCAD hourly
I’ve been short USD/CAD since April 18 in one of the most glacial FX trades of all time. I’ll cover here and look to sell a rebound to 1.1000.