Big Low in USD/CAD?
- Cycles turn positive on USD/CAD
- Reverses from key Gann level
Unfamiliar with Gann Square Root Relationships? Learn more about them here.
The next few days should be significant for USD/CAD from a time perspective. A longer-term “Pi cycle” related to the 2012 low is converging with several shorter-term oriented cycles in the rate through Monday. This confluence of timing techniques increases the odds, in our view, that price is undergoing some sort of significant reversal here. With the rate having declined steadily into this period, we are on the lookout for a resumption of the long-term uptrend (upside reversal) and view this turn window as an opportunity to align ourselves with this broader trend. We like buying into any moderate weakness over the next few days. Only unexpected aggressive weakness back under 1.0900 would force a re-think of the positive cyclical outlook.
USD/CAD Daily Chart: February 19, 2014
Charts Created using Marketscope – Prepared by Kristian Kerr
Key Event Risk in Coming Sessions:
LEVELS TO WATCH
Resistance: 1.1100 (Fibonacci), 1.1120 (Gann)
Support: 1.1010 (Gann), 1.0945 (weekly closing low)
Strategy: Buy USD/CAD on weakness
Entry: Buy USD/CAD at 1.1015
Stop: 1-day close below 1.0945
--- Written by Kristian Kerr, Senior Currency Strategist for DailyFX.com
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.