With Iran and the US signing a peace deal, where does that leave Benjamin Netanyahu? 
Gold Surges Above Key EMAs, Bulls Eye Resistance Amidst Bullish Momentum 
AI Memory Boom Sparks Global Chip Supply Crunch 
Goldman Sachs: US Dollar Likely to Stay Strong Despite Oil Price Retreat 
SpaceX Stock Gets $175 Target as Analysts See Massive Growth Ahead 
Morgan Stanley Sees Chinese Auto Market Recovery Gaining Momentum in Late Summer 
J.P. Morgan Sees Potential Vestas Guidance Upgrade Amid Strong Wind Energy Demand 
Trump’s Iran Strategy: What Has Been Achieved After Three Months of Conflict? 
Gold's 365-Day EMA Streak Since Oct 2023 Faces Its First Real Test at $3,980 — Break or Bounce to $4,140? 
How AI prompting turned writerly description into an everyday skill 
US dollar is likely to strengthen further against Canadian dollar.
Economic fundamentals are strengthening in US, whereas Canada's economic activity weakened further.
Monetary policy remains divergent. Bank of Canada (BOC) is expected to lower rates further from current 0.75%, whereas US Federal Reserve is looking to deliver at least one rate hike this year.
Canada is a commodity driven economy and its major export crude oil has broken the recent 8 week long congestion to the downside. Canada prices its oil using WTI benchmark, which is likely to remain weaker over the coming months.
Above fundamental makes this trade very lucrative.
We have been calling for weeks to sell loonie against dollar (see snapshot commodity pairs) and believe given the risk reward (still above 1:1) the trade can still be taken. However, it is better to average the entry price by buying at dips.
Resistance area around 1.285 is likely to provide opportunity to buy at dips.
Trade idea -
- Sell loonie against dollar, with a target of 1.285 as initial one, 1.325 area as second and 1.385 as third. Stop loss should be kept around 1.22 as initial and 1.19 as next.
