Charted above is my phasing analysis on the USDCAD currency pair. It seems evident that the USDCAD has realized its 18 year cycle high in a similar fashion to most other USD based currency pairs. I put out a video some time ago now that called for the top witnessed in 2015, I had also put out a video recently suggesting adding to short positions. Unfortunately that video came a little too soon. The projection was projecting declines but the strength in the USD and weakness in oil prices persisted. Personally I have been stopped out on my positions on the CAD. I am looking to enter short again at the break of the 30 week VTL presented above. Once that VTL is taken out then we have reason to believe that the trajectory is most likely heading south until the new year which fits in line with our projection on the crude oil market. For Elliott wave enthusiasts the Elliott pattern is presented below.
The pattern that unfolded from the all time low is a “flat” correction or a 3-3-5 correction to the upside. The pattern is as clear as the sky in July and we are likely going to continue south as soon ad the second wave correction terminates. A break of the 40 week VTL spoken of earlier will indeed prove that the second wave correction has terminated and then we would be in the very early stages of a third wave decline to the downside. I would recommend traders to keep a close eye on this currency pair since I am very bullish on Crude prices potentially more than I am on Gold. The AUDCAD should be an interesting pair to look at when I get the time. For now, speculators should watch the 40 week VTL closes for any form of penetrative action to trigger short positions going into the new year!