USD/CAD gravitates around short-term 50 SMA; Short or Long?

The USD/CAD killed any buying or selling interest just like the other currency majors during a boring trading day that lacked any specific direction. 

Furthermore, the loonie traded a narrow range between the 1.3250 resistance and 1.3190 support. The currency pair weighed three relevant variables in the price action formula: Trump Trade + BoC futures cuts (if any) + WTI Oil output. To move the needle in any direction, one of those have to become more than fancy statements. 

Dollar about to explode or closer to the edge?

Kathy Lien, Managing Director BK Asset Management, shared relevant comments to understand how things can look in the next couple of days, “The dollar is marking time before U.S. President-elect Donald Trump's press conference on Wednesday.  As you, all know the rally in U.S. stocks and the U.S. dollar was driven entirely by Trump's promise for tax cuts and big spending.  In his first press conference since July and first official news conference since being elected President, Trump will most likely repeat everything that he previously vowed to achieve while giving little details on specific policy actions. The question then becomes how the markets will react - will they be disappointed by the lack of specificity or encouraged by his pledge to spend. 

“Considering that he could be peppered with questions on tax reform, conflicts of interest, Russia's interference, Obamacare, trade and other market moving topics, there's no doubt that investors will be on edge but at the end of the day the incoming President could help more than hurt U.S. markets by simply repeating at every opportunity "he's going to make America great again," - the same tagline he's used throughout his campaign.  For the time being, the market and the Fed continues to believe that Trump will deliver a major fiscal spending package and until there's reason to suggest otherwise, dips will remain shallow.”

USD/CAD Technical Levels

At the time of writing the pair trades around the 1.3220 figure. To the upside, on the short-term, the Canadian dollar requires a close above the 50 SMA to raise the 'buy flag' so bulls can retake control. To the downside, Stochastic (5,3,3) readings hint further downside and things can get messy, especially if prices break below the psychological 1.3200 figure. 

WTI Oil – Under pressure due to rise in US output