News Column

Big Low in USD/CAD?

February 19, 2014

Kristian Kerr

Talking Points

  • 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

    Range_FEB_19_body_Picture_2.png, Big Low in USD/CAD?

    Key Event Risk in Coming Sessions:

    Range_FEB_19_body_Picture_1.png, Big Low in USD/CAD?


    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

    Target: 1.1220

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    Source: DailyFx

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