USDCAD ready to reverse its freefall
After a bit of a publishing hiatus, I'm excited to publish an idea on a pair with so many signals pointing toward a potential reversal. I have overlaid the UCAD chart with the DXY (dollar index) to show the direct correlation between the two data sets, and how the dollar appears to be winning the figurative "tug of war" between currencies. As the USD begins toying with 12-month lows, the dollar selloff looks less enticing (who want's to sell low, buy high?) As price action nears trendline support we see confluence by means of horizontal support zones in both UCAD price action as well as the DXY. While the current snapshot is zoomed out in order to reveal the diagonal trendline support / resistance lines, another clue for potential reversal exists in the 4H chart in the form of MACD convergence:
Fundamentally, the dollar faces serious headwinds as the current Trump administration struggles to fulfil its campaign promises. Technically, the reversal is sound.
Fundamentally, the dollar faces serious headwinds as the current Trump administration struggles to fulfil its campaign promises. Technically, the reversal is sound.
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