USD CAD Swing Chart Indicates Further Break

The USD CAD is trading lower in spillover weakness from yesterday’s break. On Thursday the Bank ofCanada backed off from implementing an aggressive plan to stimulate theeconomy.

The USD CAD is trading lower in spillover weakness from yesterday’s break. On Thursday the Bank of Canada backed off from implementing an aggressive plan to stimulate the economy. The BoC wants to wait until it can see the effect of its last interest rate cut on the economy.

On April 21 the BoC cut its benchmark interest rate to 25 basis points. The new plan which involves quantitative easing or the printing of money is considered risky because if applied incorrectly can trigger inflation.

The daily swing chart remains down.  The rally earlier this week to 1.2507 was a retracement of a prior down swing.  This current break appears to be poised to challenge the last swing bottom at 1.1981.

James A. Hyerczyk has been actively involved in the futures markets since 1982. He has worked in various capacities within the futures industry from technical analyst to commodity trading advisor. Using W. D. Gann Theory as his core methodology, Mr. Hyerczyk incorporates combinations of pattern, price and time to develop his daily, weekly and monthly analysis. His firm, J.A.H. Research and Trading publishes The Forex Pattern Price Time Report... More

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