CADUSD: 05/28/2017

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The chart above presents my phasing analysis on the CADUSD or the USDCAD inverted chart. It seems evident that the CAD has put in an 18 year cycle low recently and much higher prices are likely around the corner. This hypothesis fits in well with our generalized bearish outlook on the USD as depicted in the EURUSD post and that on the GBPUSD as well. I have been telling subscribers for the longest time to Long the JPY pairs considering that the USD seems bearish against everything except for the JPY as mentioned in the video recorded on the JPYs and Nikkei 225 several weeks ago. The CAD had its initial burst higher which I believe is going to continue going forward for many years to come in not a decade into the future. It is important to note that the low in the year 2001 was a Kondratieff low and we are on the verge of a trend cycle to the upside that is likely to dwarf the recent advance witnessed in the early portions of this century going into the double top witnessed in 2011. Many people in the investment community may look at this double top and expect a major reversal to the downside in terms of the CAD. It is worth noting that a double top needs to have something to reverse. Judging from the scale of the double top this market ideally should have been rising for many years prior to its formation which simply did not occur hence this renders this double top as a false one rather than being a valid one.

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The chart above presents the projection I have on the CADUSD. It seems evident that the advances are likely to begin escalating going forward with an uptick in volatility expected. Speculators should begin to consider longing the CAD against the USD or shorting the USDCAD from a position trading perspective considering that the advance in the CAD is projected to last for quite awhile going forward. This gives us valuable insight into what we can expect in terms of the CRUDE OIL market going forward. The projection in both instruments looks significantly bullish for CRUDE and the CAD and significantly bearish for the USD for many years to come.

Ahmed

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