First, as you can see via the link below, I have some early feelings about WTI. As CAD is often considered as a "commodity ccy" with its performance somehow related to oil price, I started to think about the chances of some temporary CAD weakness.
Second, thing is that the recent USD correction has approximately reached all my original targets on most of the pairs I was looking at ( USDHUF , GBPUSD , EURUSD , USDTRY ) and of course on DXY as well.
So I thought I need to check what's cooking in the CAD charts, both ag EUR and USD.
EURCAD daily (left panel):
- Last time I warned about a reversal and called for profit taking on shorts was on 22/April ( pls see link below). Since then picture has really changed from to neutral: Price is in the cloud, trading at 100 , Chikou Span crossed above past candles, Tenkan/Kijun is weak to medium , Senkou A and B lines touch each other. A thick Kumo overshades the Price ahead.
Price will either try to attack 1,3750 supp/res, or will bounce back towards 1,3400, and will range trade in the Kumo.
From this setup it will be very difficult to push EURCAD back below 1,3400 and turn the picture to again. If The Kumo and 1,3400 holds, there will be a chance that EURCAD develops an inverted pattern later (after pattern validation the measured tgt &nbs