US $ vs Cdn $: Commodity Price Turnaround Coming?

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We may see a turnaround sometime soon on this USD:CDW forex pair.

A break and hold below 50 on the RSI could signal a retest of the 1.250 price level, or lower at the 50 MA at 1.223. The bearish crossovers on the MACD and Stochastics are forecasting lower prices for this forex pair.

If we see a pop in Oil and Gold, we should see the Canadian $ regain some of its losses against the U.S. $. Since somebody bought today’s (Tuesday’s) intraday dip (big-time) on Canada’s TSX to the tune of 150 points from its low of the day, this could be hinting of higher commodity prices. Watch it for clues in the short term; otherwise, today’s action may have just been an opportunity to short the Canadian equity and currency markets (and some commodities) at short-lived higher prices.