Get started

Usdcadlong

USDCAD Reacts to CPI & Debt Ceiling WoesUSDCAD Reacts to CPI & Debt Ceiling Woes Two big events affecting the USD/CAD pair include the CPI reading from Canada this week as well as the ongoing debt ceiling crisis in the US. In April, the monthly Canadian headline CPI surged by 0.7%, resulting in an annual rate of 4.4% compared to the previous 4.3%. This increase exceeded the consensus estimates by three-tenths of a percent in both instances. Consequently, the USD/CAD experienced a 0.4% decrease, reaching 1.3404, before rebounding to a high of 1.3535 USD/CAD has now also breached its 200-day simple moving average on the downside, closing below it to reinforce the bearish signal. Strengthening this assertion is that the Bank of Canada had recently put a halt to its tightening campaign, having raised interest rates by 425 basis points since March 2022. However, they indicated that this pause was dependent on the inflation outlook aligning with the forecasted trajectory. It is unlikely that this week's CPI data meets this requirement. Offsetting the positive news for the Canadian dollar is the prevailing optimism in the United States regarding the government's ability to avoid defaulting on its debt. Following emergency discussions at the White House, President Joe Biden and Republican leaders cautiously expressed hope for a potential agreement to raise the US debt ceiling. The agreement must be reached and approved by both houses of Congress before the federal government exhausts its funds to cover expenses, which could occur as soon as June 1 (only two weeks away). Despite House of Representatives Speaker Kevin McCarthy stating that the two parties remain considerably apart, he believes that a deal could be achieved by the end of the current week.
by BlackBull_Markets
Elliotical Approach to USDCAD Long.Hello Traders! 1. We see an Expanding Leading Diagonal for Wave 1. 2. As per the guidelines, the most common level for retracement of a leading diagonal is 78.6% . That is exactly what happened here. We also have a support on the same level. 3. We have a clear invalidation level at the start of Wave 1 . 4. The most expected target for Wave 3 would be 161.8% of Wave 1 as per the guidelines . The target could differ as per more development in price action. 5. There is a bit of a change when concerning the original idea. It has been attached. Do use proper risk management. Happy Trading! Profits, Market's Mechanic.
Long
by UnknownUnicorn27677748
My Elliotical Approach to USDCAD Long.The chart mentions everything pretty clearly. My next approach would be to look for an entry point close to the channel's lower trendline with the protective stop (invalidation level) at wave 1 high. This is the 5th wave of the 3rd wave as per my analysis which we would attempt to capture. The target should be close to the channel's upper trendline. A definitive target will come into existence once the correction is completed. Happy Trading!
Long
by UnknownUnicorn27677748
1