March Canadian dollar still showing bullish flag and didn't drop as much as other money markets. Still watching the USD to show direction as the USD is still building the head and shoulders.
The March Canadian dollar is creating a bullish flag today. The USD was down and looking more bearish. The USD is creating a head and shoulders, so for the moment, the USD will be in chop allowing the CAD to progress higher. Next upside for the bulls for the CAD is the 61.8% position at .76305 and if it can push higher 78.6% completing the weak Cypher pattern at...
Canadian dollar at a 2 week support level, in terms of shorter term counter trend, this could be a good buy level targeting the 61.8 Fibonacci extension as possible resistance, however looking at the larger trend, if price were to break support- look for a larger continuation to downside.
CAD hardly broke this descending wedge this week and finished this week right at support. The wonderful market left itself right here as the USD slumped a bit from resistance to finish the week.
We would look to short on a break and retest of the green zone. If we rally back into the wedge, I want to see what happens near that down trend line. A rejection would...
Really looking for price to get into our discount zone which is the area between the purple (89 week sma) and the yellow (89 day sma) to make a trade in the direction of the trend. However, this is an exhaustion candle here with the red arrow. This indicates the market testing new higher highs and then closing much lower than the high. The market didn't like...
So, 1,45 or 1.50 are nice fib and Ch target for U$/C$.
But a simple line analysis suggests potential for even more considerable weakness for the CAD. Antipodeans short v CAD still preferred - Kiwi. then Aussie.
Tho chances of pullback if Fib retraces of around Jan 4th (short USD/CAD @ 13980 T1 13733).
Sudden ratchet of Mid East tension could see this move fast.
Other x, esp vs NZD and AUD due a retrace (at least at first) - and then looking for poss trend reversal
