Ricex
Sergeant
- Messages
- 358
Usd/cad
Hi,
thought I'd share something I've been watching on the usd/cad pair. It's another common pattern that we can find on all time frames, a declining triangle pattern. This one happens to be on the daily chart which makes it pretty important in my opinion.
It's fairly easy to spot and can be very profitable if played correctly. As we can see the bulls are having a hard time pushing price higher, every battle results in a lower high, but the bears aren't able to make that push through support either so this is squeezing the price tighter and tighter into a corner and eventually something will break.
Scenario A is a bulls win, strong $ (as we have witnessed recently) and a weaker CAD, breaking through the downward trend line helped also by some weakening of oil prices as this pair correlate heavily with that particular commodity.
Scenario B is a bears win, the $ returns to it's weakening ways and the canadian economy continues to pull itself out of the mire with some refreshing employment figures etc. It's winter and that means oil demand will increase which could also help CAD.
Looking at this second chart we can clearly see we are at a potential crossroads for this pair, a crossroad where major moves have happened in the past.... an interesting pair to keep an eye on over the next few weeks.
Hi,
thought I'd share something I've been watching on the usd/cad pair. It's another common pattern that we can find on all time frames, a declining triangle pattern. This one happens to be on the daily chart which makes it pretty important in my opinion.
It's fairly easy to spot and can be very profitable if played correctly. As we can see the bulls are having a hard time pushing price higher, every battle results in a lower high, but the bears aren't able to make that push through support either so this is squeezing the price tighter and tighter into a corner and eventually something will break.
Scenario A is a bulls win, strong $ (as we have witnessed recently) and a weaker CAD, breaking through the downward trend line helped also by some weakening of oil prices as this pair correlate heavily with that particular commodity.
Scenario B is a bears win, the $ returns to it's weakening ways and the canadian economy continues to pull itself out of the mire with some refreshing employment figures etc. It's winter and that means oil demand will increase which could also help CAD.
Looking at this second chart we can clearly see we are at a potential crossroads for this pair, a crossroad where major moves have happened in the past.... an interesting pair to keep an eye on over the next few weeks.