The USDCAD has been in a range between 38 and 129 fibo levels up until late December after an upward move that started in September 2017 . Recent strengthening witnessed in the CAD may have been due to activities in the Crude oil market that saw a surge in prices
USOIL
as a result of supply disruption in Nigeria and Libya which led to oil prices trending higher towards the $60 pbl. This also led to a breakout from the range.
it was observed that towards the close of last weeks's trading session, most of the currencies seems to have moved against the CAD. This may show signs of the currency weakening and opening the door for the USD to trend higher. We may also want to pay attention to the U.S. Inventories data for insights.
Looking at the charts, we may have an opportunity to trade a shark pattern at the D leg. Though we could still the pair trend downwards below the 1.25 area. This may present the opportunity to go long at a good discount or may as well invalidate the move.
Notice how the price seems to turn after a down trend. Except for possible areas of S/R, the ichimoku indicator may not tell us much due to the ranging nature of the currency pair
USOIL
as a result of supply disruption in Nigeria and Libya which led to oil prices trending higher towards the $60 pbl. This also led to a breakout from the range. it was observed that towards the close of last weeks's trading session, most of the currencies seems to have moved against the CAD. This may show signs of the currency weakening and opening the door for the USD to trend higher. We may also want to pay attention to the U.S. Inventories data for insights.
Looking at the charts, we may have an opportunity to trade a shark pattern at the D leg. Though we could still the pair trend downwards below the 1.25 area. This may present the opportunity to go long at a good discount or may as well invalidate the move.
Notice how the price seems to turn after a down trend. Except for possible areas of S/R, the ichimoku indicator may not tell us much due to the ranging nature of the currency pair
Trade closed: target reached