USD/CAD Technical Analysis
- NKT Pandemic Pattern ™
- We move down as the trend is developing
- Lots of space till next support
- Double pinbar spotted
MEGATREND MAs: Bearish
D1 Chart USD/CAD
- Pandemic pattern
- Start of downtrend
- Double pinbar rejection™
- Continuation towards Q L3
The USD/CAD is moving down as the NKT Pandemic Pattern ™ started the move. The pattern is confirmed after the cross of the moving averages and it’s spotted in the chart. My Telegram group received the signal to sell at 1.2836 and the trade is live. Possible continuation down towards Q L3 pivot point and M L3 camarilla pivot 1.2680 zone.
Have in mind that the CAD is connected to OIL too. It is important to note that based on its historical relationship, when oil prices rise, the USD/CAD falls and vice versa: when the price of oil goes down, the USD/CAD rises.
The Canadian economy is highly dependent on its exports, and the majority of its exports go to the United States. For this reason, the USD/CAD can be greatly affected by how American consumers react to changes in oil prices.
When U.S. demand increases, the price of oil rises and the price of the USD/CAD goes down.
When the U.S. demand falls, the price of oil decreases and the USD/CAD price rises.
This analysis, and Pandemic pattern ™ are a part of the Megatrend trading course. I have 1 short position that I will maintain. The intraday target is 1.2714 while the intraweek target is 1.2680. Swing target is 1.2555 but it’s currently out of the question due to high correlation to OIL.
Cheers and safe trading,
Nenad
