Guys. I think this Chart has a beautiful similarity. Let's see whether the USDCAD will Pull Back to 1.3063 Level. Just as what JPN225 did.
Comments
ElPatron.Y
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USDCAD had a weekly IHS.
charle5035
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That's a nice pickup. I am however concerned about its correlation in future charts due to the fact that the US officially ended its ZIRP program, whereas Abenomics continues to play a critical role in the Japanese economy. What leads me to believe this is the fact that Japan had a period of QE from 2001-2004, and 2010-current.
I think from those ideas, these curves are essentially derived from governments trying to save its economy through monetary policies such as QE and lowered interest rates. Also, since many world economies are largely linked to the US economy, it seems that countries easily affected by US market crashes & bear markets see a delay in following suit with mitigative fiscal policies, like a ripple effect.
I guess what I mean to say is that if Canada doesn't tighten their fiscal policy in the US' footsteps, we will likely see a divergence between these two graphs within the next quarter.