I start sharing my Weekly Index analysis for all major indexes. This will help FX traders to have a better understanding on the direction of future trades. Obviously, this is not THE ONLY way. But it should help improving our trading.
PLEASE DROP YOUR COMMENT & HELP ME TO IMPROVE THIS WEEKLY POSTING.
CXY is bearish. Will the downtrend continue? Looking at the bigger picture, I'd expect a short-term correction before (or if) CXY moves southward to test the lowest support.
These are just the technicals, macroeconomic factors are ignored here!
analyzing Canadian dollar index is significant for oil analysis as correlations is directly and intensely
now CXY broke its supports to fall for third time to its lowest
please see my previous analysis as below in which our wave count invalidated
Canadian dollar index is within its correctional wave and a wolfe wave pattern is seen there indicating final leg of WXY will be completed
this week BOC will announce new interest rate which predicted to be hawkish
CXY or the Canadian Dollar experienced massive rally from the 2nd week last month and raided most of its rivals. But at this point of writing. CXY broke resistance trendline after it reached its peak and its weakness starts to show itself in some pairs ie CADJPY,GBPCAD,NZDCAD and USDCAD mostly when you view in Daily candles.
RSI channel clearly shows that CAD buyers come in to market every time CXY could not hold its value
Also it shows that CAD has bullish market
Finding currency which is bearish, is great chance to have trade agains CXY
CAD Index tracks the price of a CAD dollar. It's movement affect mostly the pairs have CAD. USDCAD and NZDCAD pairs have the perfect correlation of this index. The retest of a Daily Trendline gives us the opportunity to buy. The most important thing is to look for a buy setup and take a trade.
