Trudeau
USD/CAD - Moving Back into Bearish Territory?The rally in USDCAD has lost momentum over the last couple of months, perhaps a sign that the correction is drawing to a close.
The pair only recently broke above the 200/233-day SMA band, giving the impression that the correction had only just started. But then it failed to make a new high last week and now it's testing that same moving average band from above.
The recent surge we've seen in oil prices may be contributing to the recovery in the loonie, which also coincided with Justin Trudeau's election victory last week.
If the move continues and the pair breaks back below 1.26, it would push the pair back into bearish territory and could see it gather momentum.
A look at the 4-hour chart suggests it may not be that simple. The momentum indicators are showing a divergence with price action that suggests the move of the last week is fading.
That doesn't necessarily mean a break of 1.26 isn't happening but perhaps that we'll see a pullback first.
Shorts covering quicklyThe evolutionary break of 1.260x unlocked the floodgates and buyers successfully captured the higher high. But the revolutionary attack would not be complete without capitulation and be as follows:
1. Taking 1.295x (there is no question of having broken above July 19th highs, since sellers have given up a lot of ground for it, will unlock a test of 1.331x as a minimum flow 2. Using 1.317x for reference. The idea behind this attack, as clear from this example, consists of forcibly clearing a way through the defences to unlock a momentum move. Here sellers themselves have to cover their positions, so that triggers the cascading and comradeship.
All we need to concentrate our forces on, is attacking if above 1.295x, till then we can continue sitting on our hands in a neutral position if not already loaded from below. Amongst other things, we also need to consider the forcible breakdown in Oil to $57 which will can add fuel to the attack.
ridethepig | CAD Quarterly Outlook 📍 USDCAD
Prepare for a flush in CAD with the ever-present threat of Canadian tariffs from Trump. Protectionism is excellent at the best of times...let alone in the middle of a pandemic... right 🥺
The unwinding is picking up speed - RSI on track for the decline and pressure looks set to carry us into the 70 handle.
=> A possible breakdown can also now be met with the USDCAD flows. As you can see, the CAD weakness has affected the basing structure and now sellers of the Canadian Dollar will deprive buyers the fruits of their deeply laid plans of Dollar devaluation across the board. Thanks to a little tactical finesse, to this trade.
CAD POLOZ SPEECH TODAY MAY 25TH - NZDCAD POSSIBLE BULLISH MOVEFX:NZDCAD
AS WE ENTER THE LAST WEEK OF THE MONTH
WE'VE SEEN BULLISH ACTION ACROSS NZD AND AUD BASED PAIRS
POSSIBLE CONTINUATION WHILE WE ALSO COULD SEE FUTHER DOWNSIDE
PRESSURE IN OIL OR CAD ITSELF DUE TO THE STATE OF THE ECONOMY
AND PRINTING OF $$$$. HOLD ONTO YOUR HORSES, IT'S ONLY MONDAY TRADERS!
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CAD BEAR MARKET I HAVE BEEN CALLING FOR OVER A YEAR!REGARDLESS OF THE DOLLAR'S STRENGTH AGAINST OTHER CURRENCIES, THE CANADIAN LOONIE WILL SHOW MASSIVE WEAKNESS!
SHORTING CAD WILL BE AN EXTREMELY PROFITABLE TRADE AS CANADA WILL BE THE FIRST WESTERN NATION TO EXPERIENCE HYPERINFLATION THIS DECADE!
THE CANADIAN ECONOMY IS EXTREMELY FRAGILE, INEFFICIENT AND LACKS PRODUCTIVE DIVERSITY! NOT TO MENTION FASCIST AS HELL!