Is the Canadian Dollar ready to change its direction
On a Monthly graph it seems that the USDCAD have an old resistance around 1.1850 back to 2004.
Also it have been rising for five consecutive months including January 2015.
On a daily graph it seems also that the currency pair had been moving inside a channel for several months and as it hit its resistance area it also touch the upper line of its rising channel.
By adding evidence it seems to me that USDCAD is in a Key zone that might lead it to reverse its trend or jump to a new level.
Good analyze. Now we can wait for a confirmation in one direction or an other.
I want also to mention the high inverted Correlation between USDCAD & Oil, the reason for this correlation that the CAD
has a high correlation to Oil due to Canada’s extensive oil deposits.
Most of this oil is purchased by the US causing a transfer of funds
along the way. As oil prices fluctuate, this increases or decreases the
amount of funds transferred from USD to make purchases of Canadian resources. These transfers essentially change demand for the currency
and can directly cause changes in the USDCAD currency pair as well.
The chart below show how much this inverted correlation get strong from July 2014 until today.
- www.dailyfx.com
Today, USDCAD at level 1.1866,,, and probably make correction down to 1.1310 ... and then continue up to 1.1862 for second trial break (your red horizontal line)
On a Monthly graph it seems that the USDCAD have an old resistance around 1.1850 back to 2004.
Also it have been rising for five consecutive months including January 2015.
On a daily graph it seems also that the currency pair had been moving inside a channel for several months and as it hit its resistance area it also touch the upper line of its rising channel.
By adding evidence it seems to me that USDCAD is in a Key zone that might lead it to reverse its trend or jump to a new level.
it just break level 1.1850 to almost 600 point in 2 weeks.
Well I think if that day I made sell at 1.1850 (on 11 Jan 2015), it will makes me loosing 600 point.
- Free trading apps
- Over 8,000 signals for copying
- Economic news for exploring financial markets
You agree to website policy and terms of use
On a Monthly graph it seems that the USDCAD have an old resistance around 1.1850 back to 2004.
Also it have been rising for five consecutive months including January 2015.
On a daily graph it seems also that the currency pair had been moving inside a channel for several months and as it hit its resistance area it also touch the upper line of its rising channel.
By adding evidence it seems to me that USDCAD is in a Key zone that might lead it to reverse its trend or jump to a new level.