Weekly Chart Signals USD CAD Bottom

Speculators anticipating a recovery in the U.S. economy and a possibleend to the Fed’s easy money policy helped boost the USD CAD.Technically this pair formed a weekly reversal bottom which should leadto a minimum 2 to 3 week correction.

Weekly Analysis

USD CAD

Speculators anticipating a recovery in the U.S. economy and a possible end to the Fed’s easy money policy helped boost the USD CAD. Technically this pair formed a weekly reversal bottom which should lead to a minimum 2 to 3 week correction.

This week’s low just missed a .618 retracement of the .9055 to 1.3062 range.  This Fibonacci number came in at 1.0586 while the actual low was at 1.0630.

Earlier in the week a reversal bottom was formed on the daily chart.  Today it was formed on the weekly chart.  A follow-through rally is needed to confirm the pattern.

Weekly Chart

Click to Enlarge Image