I’ve been pounding the table for awhile on USD/CAD longs and it’s all come together in the past two months, with a one-way move up through a series of highs in the 1.3950 range. Now the pair has clearly broken out and it’s due to a soft Canadian economy and a surprisingly strong one in the US. The Fed is already talking about slowing rate cuts and the Bank of Canada is likely to cut 50 bps next month.
Technically, this is as clear as the bitcoin breakout above $73,000. The target is 1.4500.
USDCAD weekly chart