CAD Futures: 07/03/2017

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Charted above is my phasing analysis on the CAD Futures. It seems evident as is the case with Crude Oil and the commodity markets that we have put in an 18 year cycle trough in terms of this currency. It is important to note that the trough realized in the early 2000s is a Kondratieff cycle trough and we are on the verge of a trend cycle in terms of this currency and hence more right translation is to be expected in the upcoming, or I should say, ongoing advance. The advance is still in its early stages and is just beginning to clear its throat! Much higher prices are very likely in terms of the CAD futures and hence the USDCAD is likely to embark on a decline that is likely to be the steepest since the outset of currency trading in the early 1970s with the collapse of the Bretton Woods agreement.

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Considering that we were in the final 18 month wave of the previous 18 year cycle, a break of the 18 month FLD is significant enough to warrant a trough of the 18 year wave. It is evident from the chart above that the 18 month FLD was taken out to the upside hence alerting us and confirming a trough of the 18 year wave. Moving forward, the sky seems to be the limit for this particular currency future.

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The chart above presents my projection on the CAD futures. It is important to note that the amplitude of the advance need not to be as large as what is presented above but the swiftness and volatility of the advance is likely to be similar to that which occurred in the early portions of the 2000s. Speculators need to accept that the tide has turned in terms of the CAD futures and much higher prices are likely to be on the horizon. This projection suggests that the remainder of the year is likely to be positive in terms of the CAD futures and going long should be the only strategy taken by speculators in the upcoming environment.

Ahmed

 

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