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.
USDCAD 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 USDCAD best movement happens during that session.
The analysis and the article presents Nenad's opinion. Remember, financial trading is highly speculative & may lead to the loss of your funds. Proper risk management is the Holy Grail of trading.
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