Correctional Phase is over + Crude News
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Well we can see here that the pair is reaching the end of its correctional phase technically from its previous spike. So from here we can expect a reversal in the short term bearish trend.
As such the Canadian Dollar is highly correlated with Crude prices as it is Canada's #1 export commodity, this means that the further fall of Crude may indicate the weakening of the CAD. By the looks of the charts we have already tested the psychological level of 40.00 and analyst believes that it may well reach as low as 20.00. This is because there is simply 'Too much Oil Stock' in inventory and refining processes have completed the seasonal maintenance work for the winter.
(Sources: Financial Times, FXStreet, Bloomberg)
Finally as we watched the dovish speech from the recent ECB Meeting, they are still on track to loosen policy at the next December meeting.
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Fundamental Analysis Disclaimer
Fundamental Analysis is a great way to identify opportunities within the Foreign Exchange and Financial Stock Markets as they provide an insight into the vision of where the current market will go according to it's economic surroundings. Simply watching the news may not always be the best route to take as the market will have already discounted the prices prior to the news or event. However, it is still very important to consider Fundamental analysis and combine with Technical Analysis to generate the trading potential. The best way to do this is to simply gather the information and brainstorm of the events that it can trigger in the future. This is known as true innovation.
This is simply my vision for the future of this product by gathering all the relevant information that is organised to generate this trading idea.
For more Fundamental and Technical trade setups, feel free to follow. Most setups will take a few days for analysis.
Happy Trading
As such the Canadian Dollar is highly correlated with Crude prices as it is Canada's #1 export commodity, this means that the further fall of Crude may indicate the weakening of the CAD. By the looks of the charts we have already tested the psychological level of 40.00 and analyst believes that it may well reach as low as 20.00. This is because there is simply 'Too much Oil Stock' in inventory and refining processes have completed the seasonal maintenance work for the winter.
(Sources: Financial Times, FXStreet, Bloomberg)
Finally as we watched the dovish speech from the recent ECB Meeting, they are still on track to loosen policy at the next December meeting.
__________________________________________________________________________________________
Fundamental Analysis Disclaimer
Fundamental Analysis is a great way to identify opportunities within the Foreign Exchange and Financial Stock Markets as they provide an insight into the vision of where the current market will go according to it's economic surroundings. Simply watching the news may not always be the best route to take as the market will have already discounted the prices prior to the news or event. However, it is still very important to consider Fundamental analysis and combine with Technical Analysis to generate the trading potential. The best way to do this is to simply gather the information and brainstorm of the events that it can trigger in the future. This is known as true innovation.
This is simply my vision for the future of this product by gathering all the relevant information that is organised to generate this trading idea.
For more Fundamental and Technical trade setups, feel free to follow. Most setups will take a few days for analysis.
Happy Trading
Note
**UPDATE** Fed has announced a surprised Liquidity Swap for today which I believe should be around sometime in the afternoon. I am looking to catch the news as I believe that it should be swapped with either the EUR or YEN if the announcement is made but at the moment it's still tentative but for most cases it may be a Rate Hike. Any cases, the USD is looking like it may drive towards the upside of against the currencies. But in the meantime, expect some volatility in the markets today and even the EURCAD!
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