After last week’s rally by the bulls, bears are having one of their own for the Dollar. With that in mind, traders could see USDCAD head lower on an intraday level.
Yesterday bears were able to take the US Dollar Index (DXY) back to last week’s low of 91.800. Today bears made another statement by pushing and closing below this level on the smaller time frames. We could see bears try to take the price back down to 91.400.
With Dollar bears gaining momentum, USDCAD could see a push lower providing an intraday setup for traders. This pair moved impulsively to the upside last week and may be due for a deep retracement. Once the price clears the last swing low at 1.23300, traders could seek entry short.
It’ll be interesting to see when bulls reenter the Dollar, but at least in the short term, traders could ride with the bears. If this week’s weekly closure could close bearish for the DXY, we could see the Dollar return back to May’s lows.
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