Friday, September 21, 2007

Break and test

The Usd/Cad did what I said I thought it would yesterday, it bounced a number of times off of the 1.0000 range and then broke and has come up to test that level as resistance. It may be a little early to tell as we could see further consolidation near the 1.0000 level but it is responding as one would expect and a sell near here could be a good play. The big question I have is whether the divergence in oil will confirm and bleed down into the GBP and CAD trades as oil readjusts.

Another great article today by John on the divergence in oil is available. To see it, go here.

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