POTENTIAL BIG MOVE - USD/CAD - Triangle, Fib. Long-Term Outlook
Updated
The monthly graph shows the current price point is at a major historical support/resistance. This area was a major support zone for the exchange rate in the mid-'90s. Visited again in the early '00s, 2009.
but more recently,
1.32625 (+/- 200 Pips active range) is a highly contagious price point for the pair since July 1st, 2015. Since then, 1.32625 has been hit frequentyly. It is now within the tip of an Upper Triangle Formation occurring above both the 25 MA. and 50 MA (Monthly).
The price is near the highly active fib support (blue) @ 1.30800 (high hit rate location). Recently, the support held up in October, November, and now trading within this triangle tip that is seen on the graph.
Quick Fundamentals:
USD economy numbers were better than CAD economy numbers (week of Mon- Dec-1). SP500 Index is holding up (early in the week).
Possible USD upward momentum possible after looking at current Weekly DXY holding pattern which is holding above the weekly averages.
DXY
Within the past few months, it seems that trade sentiment seems to rise on good trade news, and cause only a hiccup in the markets when it's negative. It seems the markets have stopped worrying about an imminent recession (at least in the short term). (globally we are in one)
Summary:
Use this info to help you find potential trades with this pair. I'm not recommending anything other than stating the fact that this is a powerful area that has the potential to move the price in meaningful ways in the future. The current economic numbers and a few key fundamentals continue to support USD strength over CAD.
Will it rise or fall? Looking forward to seeing how it plays out.,
Thoughts? Anything I missed? Let me know. I'll continue to update as the days/weeks/months move along.
Happy trading
but more recently,
1.32625 (+/- 200 Pips active range) is a highly contagious price point for the pair since July 1st, 2015. Since then, 1.32625 has been hit frequentyly. It is now within the tip of an Upper Triangle Formation occurring above both the 25 MA. and 50 MA (Monthly).
The price is near the highly active fib support (blue) @ 1.30800 (high hit rate location). Recently, the support held up in October, November, and now trading within this triangle tip that is seen on the graph.
Quick Fundamentals:
USD economy numbers were better than CAD economy numbers (week of Mon- Dec-1). SP500 Index is holding up (early in the week).
Possible USD upward momentum possible after looking at current Weekly DXY holding pattern which is holding above the weekly averages.
DXYWithin the past few months, it seems that trade sentiment seems to rise on good trade news, and cause only a hiccup in the markets when it's negative. It seems the markets have stopped worrying about an imminent recession (at least in the short term). (globally we are in one)
Summary:
Use this info to help you find potential trades with this pair. I'm not recommending anything other than stating the fact that this is a powerful area that has the potential to move the price in meaningful ways in the future. The current economic numbers and a few key fundamentals continue to support USD strength over CAD.
Will it rise or fall? Looking forward to seeing how it plays out.,
Thoughts? Anything I missed? Let me know. I'll continue to update as the days/weeks/months move along.
Happy trading
Note
The CAD strengthened today. Rates remain unchanged. Inflation is stable. USD. Trade wars issues seem to be cooling. Equities on a roll. Rates paused. Christmas slowdown.
The pair broke through support in the short term.
We'll see.
Note
PS: Oil did well this past year. (In support of CAD? It hasn't this past year, but always a possibility)
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.