CADUSD testing key resistance, watching for metals correlation
Been watching $CADUSD bounce hard off its lows today, now sitting right at 0.71711, pushing that intraday high of 0.7177. This level is looking like a pretty strong resistance point from what I'm seeing on the daily. If it gets rejected here, it suggests we could see more USD strength against the CAD, which could in turn put a bit of a damper on gold's recent run. On the flip side, a clean break and hold above 0.7180-ish would signal a pretty significant shift in momentum for CAD, potentially weakening the dollar more broadly and giving precious metals some breathing room. My read is if $CADUSD can't convincingly clear this resistance, then the path of least resistance for it is lower, which might translate to some headwinds for XAUUSD, at least in the short term. Always gotta consider the other side, though. This move up could just be a dead cat bounce before the real correction.
The CADUSD/metals correlation isn't always as clean as people hope. You're talking about two very different drivers there; be careful not to oversimplify.