CANADIAN DOLLAR INDEX BULL RUN INCOMINGOn the Daily timeframe, we can see the completion of wave 2 correction (a,b,c,d,e). Now looking forward for the next bull run.
CADWCU trade ideas
LOOKING AT CANADIAN DOLLAR STRENGHT FOR THE REST OF 2023!We're looking to see a resumption of the bull run on the CAD INDEX as price is currently completing the second wave of the 3rd leg. A break of the red counter trend line on the weekly timeframe will give us a confirmation that wave 3 is about to begin.
It is important to know that the CAD INDEX is not a tradable pair but can be used a guide to trade CAD crosses. A strong CAD INDEX will give us an indication to look for sells on cad crosses and vice versa.
It is also key to note that this analysis is done on the weekly timeframe and will take a very long time to play out.
Disclaimer: This is not a trading signal or investment advice.
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Is the Canadian dollar ready to melt? Analysis
Please see above our analysis of the Canadian dollar index.
Importantly we have seen oil hitting the highs the past few weeks and we anticipate this bullish move on oil is starting to become exhausted. This is crucial due to the correlation between oil and the Canadian dollar. It is also worth mentioning that USD/CAD and Crude Oil are negatively correlated. This essentially means that they move in the opposing direction from each other.
With this in mind we will continue monitoring Usd/Cad for a long opportunity to take advantage of Canadian dollar weakness.
Let me know if you want to learn more on which pairs are correlated and their influence on each other.
As always, I’d love to hear your thoughts and what your outlook is. Let me know in the comments below.
Hope you have had a profitable week in the markets, and it continues through into next week.
The Fx Chartist
CAD INDEX - SHORT#CAD INDEX
8H Time Frame
Here Is The Possibility On CAD Index
Near to Reach The Top Resistance Level
After That Moving Down
