USDCAD Analysis

USDCAD is making yearly lows on the weekly chart below the green 50- Week and the purple 200- Week Moving Averages.

This past month’s price action broke the yellow trendline connecting the lows from May 2021.

Three weeks ago, it appeared that the price would test the grey rectangle.

New information puts that idea on hold.

The CADUSD chart below offers the reverse perspective.

While the charts are short-term bullish CAD, there is an overhead supply to work through, which will frustrate Long position holders on an investor timeframe.

The adage, “If it doesn’t scare you out, it will wear you out" may apply here while the buyers and sellers fight to control the longer-term trend.

When we take a longer-term view of the chart, we see that the current price action from 2016 suggests this is an Accumulation Phase before a move higher.

A break above 0.8283 likely commences a Markup Phase to higher levels.

A break below 0.69 suggests a continuation of the Decline Phase to lower levels.