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Hedge Fund Connect

Trading Call: Buy the USD/CAD pair

atiku
Written by Atiku Audu

Since the beginning of January 2016, the USD/ CAD pair has been in a steady decline, dropping all the way from 1.46881 to a low of 1.2830 last week.

That’s a whopping drop of over 1800 points!.

It is definitely due for a retracement. and looking at the price action, the loonie appears to have done a positive divergence if we use the MACD indicator.

A positive divergence occurs when the market makes a new low ; but the MACD indicator fails to confirm that low as shown in the diagram below:

Looking at the USD/CAD chart below; We can see that a MACD positive divergence has occured with the pair in the last week.

See below:

We would recommend buying now at 1.3044 with a stop around 1.28315.

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