Higher Usd/Cad Driven By Lower Oil prices

Usd/Cad made a pull-back in recent sessions as expected towards the previous wave (iv) support, shown around 0.9650. From there, pair found the BID as risk-off trade took place yesterday during the US session.

In fact, an upward reaction from the most recent 0.9654 swing shows impulsive personality, which is the most important evidence of a bullish price action! As such, we would really not be surprised to see further strength on this pair in coming trading days within wave 3/C leg once pair gains and forms a daily close above 0.9815 high!

Guest post by Gregor Horvat

Those who are trading Canadian dollar should be monitoring oil prices as well, as these two markets are highly correlated. If oil prices are falling then you will see lower value on Canadian dollar as well, and vise-versa, which means “higher or lower Usd/Cad”, as illustrated on overlay chart below.

In recent days, oil prices reversed into a corrective phase (circled), so larger trend is expected to continue, which is down since commodity lost more than $20 of value in just one week in early May. This of course supports further rally for Usd/Cad”¦

Trade well!

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Gregor Horvat

Grega Horvat Grega is based in Slovenia and has been involved in markets since 2003. He is the owner of Ew-Forecast, but before that he was working for Capital Forex Group and TheLFB.com. His feature articles have been published on FXstreet.com, Thestreet.com, Action forex, Forex TV, Istockanalyst, ForexFactory, Fxtraders.eu, Insidefutures.com, etc. He recently won the award on FXStreet.com for Best Forex Analysis in 2016. At Ew-forecast he helps clients and educates them about the Elliott wave principle and how to label and track unfolding patterns in real time. His approach to the markets is mainly technical. He uses a lot of different methods when analyzing the markets such as candlestick patterns, MA, technical indicators etc. His specialty, however, is Elliott Wave Theory which could be very helpful especially if you know how to use it in combination with other tools/indicators. EW-Forecast To be involved in the market effectively, you need the right guidance and resources, and our team can help you to achieve that. Our team is providing advanced informations about Elliott Wave theory in real time. The Elliott Wave Principle gives you a method for identifying the behavior of the markets and at what points the market is most likely to turn. We help new traders who are interested in Elliott Wave theory to understand it correctly. We are doing our best to explain our views as simple as possible with educational goal, because knowledge itself is power!

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