USDCAD retracing back to previous range

After testing the 1.3000 resistance, the USDCAD retraced back to the 1.22~1.27 range. The triangle pattern I wrote about a few weeks ago wasn’t confirmed and the currency pair is back to its multi-month range.

This Canadian dollars rally is fueled by raising crude oil prices, which is now trading at $51.70 per barrel for the May09 futures. This Canadian dollar rally may be short lived if the Retail Sales for January are down instead of the estimated raise of 1%.

USDCAD broke out of a triangle pattern

After a catastrophic Canadian Gross Domestic Product for December and Quarterly Gross Domestic Product, it looks like the Canadian Dollar is going to fall during the months to come. Looking at the USDCAD chart, the pair broke out of a triangle pattern. A close above 1.30 would confirm the breakout and open the way to the 1.4000 ~ 1.4500 area. This is a good opportunity to buy a bull call spread on the CDD FX Index.

Hello World!

Without making this post boring, I’ll skip the usual chat of the « Hello World » article and condense what I’ll be posting here. I’m a Computer Engineer with a day job and a not so secret interest in the stock market and, recently, the forex market. I mostly trade options but sometimes, I’ll work with the underlying. For the next few weeks I’ll post a series of articles about my favourite option trading strategies.