Does the recent movement in the Canadian Dollar Price Outlook: USD/CAD Breakout Targets Trend Extreme suggest that we are nearing the end of the trend? The point is, what should investors expect to move forward?
In an earlier article, I discussed why the Canadian Dollar Price Outlook: USD/CAD Breakout Targets Trend Extreme is beginning to anticipate an acceleration of the bull market. The point was that as the days to market closing short that of the past, traders can expect to experience significant increases in trading activity. That trend continues today with an unprecedented eight-day run to close above the three-month closing high.
The basis for this perspective is that the recent run of positive US economic data is starting to trickle through to the markets. The data, particularly the jobs report, has been completely and utterly positive and this, coupled with an expected lower Canadian dollar, makes for a bullish chart pattern. Traders who want to be in the gold and have the opportunity to take advantage of this today.
The Canadian Dollar Price Outlook: USD/CAD Breakout Targets Trend Extreme can also be seen as foreshadowing strong resistance levels in the USD/CAD Close. What does that mean? If markets continue their recent run of success and continue to do so, they will likely be able to sustain this level indefinitely.
For the final point of my three, let’s discuss that. One thing I’ve found in following Canadian Dollar Price Outlook: USD/CAD Breakout Targets Trend Extreme is that the Bull Market can easily evolve into a Bear Market is a crucial catalyst triggers such a decision.
It’s easy to overlook that during a bull market, it’s easy to get ahead of yourself. These movements are just too fast and the front running is often too great. This is where forex traders are so prone to lose money.
Over the last two weeks, we’ve observed a dramatic rise in the number of people who are viewing currency pair combination trades. The number of sophisticated traders who are aware of this trend and fully understand how to profit from it is also increasing. That makes sense since currency pair combinations trade on the average daily chart patterns in much the same way as the Dollar Price Outlook: USD/CAD Breakout Targets Trend Extreme.
It’s quite apparent that one reason for this is the Fed’s quantitative easing program. An increase in this program’s intensity will only help to spur demand and drive up the dollar price of goods and services in this currency pair.
When the Dollar Price Outlook: USD/CAD Breakout Targets Trend Extreme matures, a number of key points could come into play. Let’s take a look at a few of them.
First, the decline in Canadian Dollar may be inevitable. In that case, the decline in the USD/CAD Breakout Targets Trend Extreme is crucial. Expect to see a dramatic climb back up to test the three-month historical closing high in the next couple of weeks.
As the breakouts occur, a number of longer term support and resistance levels could be identified. These are important because these support and resistance levels have been identified in previous bear markets, meaning that they’re more likely to remain intact moving forward.
Over the long term, these initial post-support/resistance levels may ultimately provide resistance levels as we move toward the year end. So, the actual conclusion to this analysis should be a positive one. based on this assessment.