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USD/CAD Showing 2 Strong Confluence Points

Published 09/03/2015, 07:58 AM
Updated 01/31/2022, 02:45 AM

As we could witness it, Canada is currently undergoing a recession as the economy is suffering due to low oil prices. Oil prices have been falling sharply also through the summer and fall of 2014. As with GDP, oil prices do have a significant impact on employment and overall economy. Canada's dependance on oil and gas is threatening its overall economy and it is reflected on the charts.


USD/CAD is showing an inner trend line and a possile retracement. We see a perfect confluence at 1.3195 zone ( L4, 61.8 , double bottom ) and deeper 1.3140 ( 88.6, L5 ). Targets are 1.3310 and 1.3340. On the chart we can see important touches of trend line and if the retracement happens ideally it would reach POCs and bounce. If the price closes above inner trendline there could be a short term breakout towards previously mentioned targets. Watch US/LO market overlap as USD/CAD best movement happens during that session.


USD/CAD Hour Chart

Latest comments

Confirmed this article is bogus - CDN Export report shows the second highest showing in history. Oil reduction clearly isn't have that large of an effect
Eventually the world will realize that GDP from oil in Canada amounts to only 3-4% of total GDP and employs %1 of the population. There may well be a recession however it is minor and very very shallow and short lived. You are also missing the fact that GDP grew by 0.5% in the month of June alone at a time when oil prices were going down.
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