Yes once again CAD gained another 100 PIPs over the USD and Oil keeps going up for the 3rd month in a row, at this point we can pretty much predict the future, BUT FOR HOW LONG???
I was thinking today of my misjudgement of wednesday thinking 1.32 might be a low and USD might gain strength from there but realized I didn’t really have any proof in the pudding to back it up especially having the H4 being so overbought, on second thought it was a little foolish. So I decided to pull out YE GOOD OLDE MONTHLY CHART to see if I wouldn’t be able to see anything relevant and there it was staring me right in the face. A major zone between 1.285 and 1.267 which also acts as a 38.2 retracement. Notice the other levels as well in the fibonacci chart which also seem to fall right at old supports or resistances.
Now thinking we are going right back to parity is pushing it but I’m curious to see what the news will come up with to sway sentiment as we reach the 1.267 level, or if nothing will happen and we’ll just plough right through to the 50% @ 1.205. I highly doubt the second scenario as weekly chart is looking very oversold.
Happy Trading or Happy St. Patricks (pick one not both) 🙂