USD/CAD Possible Scenario
USD/CAD looks like it finished 3 waves down and is currently trading inside its corrective wave 4. From an Elliott Wave perspective, wave 4 is currently retesting the bottom of wave 1 which according to the Elliott principle, is considered a very critical zone and is also the 61.8% Fibonacci Retracement level around 1.2630.
If the price doesn't manage to break above this area, look for a short position to target new lows this year.
From a fundamental perspective, for everyone asking about the reason why USD/CAD was going up despite very high inflation, it was because investors were thinking that higher inflation means higher interest rates, thus a stronger dollar in the future; however, this may not be the case anymore especially after this amazing move for gold to the upside.
If the price doesn't manage to break above this area, look for a short position to target new lows this year.
From a fundamental perspective, for everyone asking about the reason why USD/CAD was going up despite very high inflation, it was because investors were thinking that higher inflation means higher interest rates, thus a stronger dollar in the future; however, this may not be the case anymore especially after this amazing move for gold to the upside.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.