Last Thursday I made a case to avoid a currency which perpetually makes the headlines everyday – I simply find it just creates too much fanfare and ‘noise’ which just makes it that much more difficult to trade. More importantly, I found one of the ‘majors’ (USD/CAD) which seemed to be giving a much more decisive outlook, technically speaking, than the Euro – S Furthermore, there was multiple key data announcements due out of both the US and Canada a mere 24-hours later and I had a hunch that one would disappoint. Sure enough the October Canadian employment figures were horrific – Net Change in Employment (-54.0K vs. exp. 15.0K), Unemployment rate (7.3% vs. exp. 7.1%) and U.S. payrolls were not awe inspiring either Nonfarm Payrolls (80K vs. exp. 95K) and Unemployment rate (9.0% vs. exp. 9.1%). As a result, USD/CAD took flight as it rose well over 120 pips within just a few hours and the bullish play has so far turned out to be a good one.
With that said, I believe the Loonie may be in store for further pain over the coming days as even rising oil prices has failed to generate any significant demand for the CAD – Highlighted earlier today on Twitter as USD/CAD & USD/NOK saw a Non-Confirmation with Oil(Brent & WTI) over the past 2 weeks. Technically, USD/CAD looks poised to stage yet another push higher as the prior low around 1.0160/65 has proven to be supportive. Furthermore, the hourly 144 & 169 EMA’s reside just below an could also buoying this pair. Yet perhaps the most important indication to my optimistic outlook is the hourly RSI Bullish divergence, which comes alongside support by the critical 40 level. As a reminder, I believe this pair is currently within wave-iii of wave-3, which is traditionally known as the most powerful move according to Elliot Wave analysis. Consequently, for those of you who missed the boat a week ago, this could be another opportunity to establish a USD/CAD bullish bias in search of a continuation higher over the coming weeks.
With that said, I believe the Loonie may be in store for further pain over the coming days as even rising oil prices has failed to generate any significant demand for the CAD – Highlighted earlier today on Twitter as USD/CAD & USD/NOK saw a Non-Confirmation with Oil(Brent & WTI) over the past 2 weeks. Technically, USD/CAD looks poised to stage yet another push higher as the prior low around 1.0160/65 has proven to be supportive. Furthermore, the hourly 144 & 169 EMA’s reside just below an could also buoying this pair. Yet perhaps the most important indication to my optimistic outlook is the hourly RSI Bullish divergence, which comes alongside support by the critical 40 level. As a reminder, I believe this pair is currently within wave-iii of wave-3, which is traditionally known as the most powerful move according to Elliot Wave analysis. Consequently, for those of you who missed the boat a week ago, this could be another opportunity to establish a USD/CAD bullish bias in search of a continuation higher over the coming weeks.