In celebration for the milestone of earning 1000 reputation on tradingview I decided to do a bonus analysis on an old pair I used to trade but not so much anymore.
Recent fundamentals has given CAD some weakness as they decided to keep interest rates the same at the last meeting after a couple previous rate hikes and rumours about further rate hikes next year. Previously the CAD dollar was very strong as USD/CAD was in a previous downtrend.
We could see price make its way to one of the major zones with 1.30 being a big psych target and resistance level, if this is broken the next major zone would be 1.32. However with Oil prices on the rise close to the yearly highs this could give an additional boost to the CAD which we know is a commodity currency highly correlated with Oil. If the prices of Oil were to keep rising and the BoC keeps with the hawkish tones indicating further rate hikes in 2018 USD/CAD will return to a downtrend. A confirm of this would be a break in the ascending channel and a change in the sequence of HH and HL to LH LL.
Recent fundamentals has given CAD some weakness as they decided to keep interest rates the same at the last meeting after a couple previous rate hikes and rumours about further rate hikes next year. Previously the CAD dollar was very strong as USD/CAD was in a previous downtrend.
We could see price make its way to one of the major zones with 1.30 being a big psych target and resistance level, if this is broken the next major zone would be 1.32. However with Oil prices on the rise close to the yearly highs this could give an additional boost to the CAD which we know is a commodity currency highly correlated with Oil. If the prices of Oil were to keep rising and the BoC keeps with the hawkish tones indicating further rate hikes in 2018 USD/CAD will return to a downtrend. A confirm of this would be a break in the ascending channel and a change in the sequence of HH and HL to LH LL.