Is the Canadian dollar ready to melt?
Analysis
Please see above our analysis of the Canadian dollar index.
Importantly we have seen oil hitting the highs the past few weeks and we anticipate this bullish move on oil is starting to become exhausted. This is crucial due to the correlation between oil and the Canadian dollar. It is also worth mentioning that USD/CAD and Crude Oil are negatively correlated. This essentially means that they move in the opposing direction from each other.
With this in mind we will continue monitoring Usd/Cad for a long opportunity to take advantage of Canadian dollar weakness.
Let me know if you want to learn more on which pairs are correlated and their influence on each other.
As always, I’d love to hear your thoughts and what your outlook is. Let me know in the comments below.
Hope you have had a profitable week in the markets, and it continues through into next week.
The Fx Chartist
Please see above our analysis of the Canadian dollar index.
Importantly we have seen oil hitting the highs the past few weeks and we anticipate this bullish move on oil is starting to become exhausted. This is crucial due to the correlation between oil and the Canadian dollar. It is also worth mentioning that USD/CAD and Crude Oil are negatively correlated. This essentially means that they move in the opposing direction from each other.
With this in mind we will continue monitoring Usd/Cad for a long opportunity to take advantage of Canadian dollar weakness.
Let me know if you want to learn more on which pairs are correlated and their influence on each other.
As always, I’d love to hear your thoughts and what your outlook is. Let me know in the comments below.
Hope you have had a profitable week in the markets, and it continues through into next week.
The Fx Chartist
Trade active:
Price has now tested our structural area and we anticipate to now see bearish pressure and price action start to form.
The Fx Chartist
The Fx Chartist