USDCAD Trading Strategy as at November 17, 2014

Any USDCAD Trading Strategy will have to be tempered with the view that this pair is going lower in, at least, the short term.


There have been some fluctuations in price in this pair as the two economies are facing different hurdles.

I have a chart here showing some divergence that probably indicates that the Canadian dollar will be settling lower in days to come.

I have another chart, a Point and Figure chart of the Canadian Dollar which shows a target of .86, also indicating a further drop.

In fundamental news affecting the Canadian Dollar:

• International Securities Transactions lower than expected.
• Oil Prices softening
• Gold prices easing back into a consolidation

On Friday will be released the Canadian Consumer Price Index(CPI) which may influence the Canadian Dollar in a positive way.

My expectation is that the US Dollar will resume its rise against the Canadian Dollar in the short term.

Point and Figure Charts Update as at November 17, 2014

Point and Figure Charts can give us some idea as to where the markets are headed. This method of charting has been used for many years and has been proven to have excellent results over the longer term.

I find it handy to have a look at various P&F charts from time to time to keep me current as to where the directions of currencies may be headed.

Most of the time on the P&F charts from Stockcharts.com is a target number where the price is expected to travel.

Here are some charts from some of the major currencies as at today.

Here is an excellent video primer on Point and Figure Charting