Inside a forming bullish pennant we find a opportunity to get long with retest of trendline/lower pennant line which should act as resistance, together with the completion of a Cypher-pattern. I entered 0.95435 with target at 0.95633 Stop loss below previous support.
Long FX:USDCAD . Price has stalled at support, we could get a rise to previous resistance.
The chart shows INVERTED dollar index (blue) vs CAD index (candles). There is a clear correlation between inverted dollar and CAD - that is, a stronger dollar negatively impacts CAD - likely since a stronger dollar weighs on commodity prices in general. At present, there is a strong divergence between CAD index and inverted dollar. This needs to be...
Uptrend from late 2016 should support the greenback against the Loonie. Fair value around 1.40.
USDCAD is at pre-election lows. USD has appreciated against most other major currencies - except CAD. This needs to be corrected. There is much uncertainty regarding trade agreements between Canada and USA post-Trump. There is an increasing yield differential between US and Canadian rates. USDCAD is an attractive buy at these levels.
Dollar strength is here to stay. Fiscal stimulus, rate hikes, $10 trillion off-shore dollar debt, rising US yields, DXY breaking out of a multi-year consolidation zone. The attached chart shows a strong INVERSE correlation between DXY and oil. As the dollar strengthens, the oil price soon follows. At present, there is a MASSIVE divergence between the oil...