While everyone is watching to see whether the 2016 low will act as a support/reversal point, I am also curious for the general direction of this currency pair over the long term. As CAD is so closely tracking USOIL prices, weakness in oil should support weakness in CAD, especially relative to USD, the currency of oil markets.
For reference, here is the slightly shorter term: (annotations on charts)
And the longer term view:
From a technical viewpoint, any reversal would ideally come from the 2016 low. However, there are few bullish news for this pair on the near term.
If price action does not signal a move upward and the pink channel breaks, I will continue to watch Yearly Pivot S1 (1.236) and 2015's low (1.193). These points may attract and slingshot a grossly oversold USDCAD.
If price does break out, key initial targets would be Monthly Pivot S1 (1.275) and Monthly Pivot (1.315).
Waiting patiently for a strong signal - for me would be a long hammer candlestick or a tweezer bottom.
Happy trading :)
For reference, here is the slightly shorter term: (annotations on charts)
And the longer term view:
From a technical viewpoint, any reversal would ideally come from the 2016 low. However, there are few bullish news for this pair on the near term.
If price action does not signal a move upward and the pink channel breaks, I will continue to watch Yearly Pivot S1 (1.236) and 2015's low (1.193). These points may attract and slingshot a grossly oversold USDCAD.
If price does break out, key initial targets would be Monthly Pivot S1 (1.275) and Monthly Pivot (1.315).
Waiting patiently for a strong signal - for me would be a long hammer candlestick or a tweezer bottom.
Happy trading :)
