USDCAD: Hurst Cycles - 12th August 2022
The 80 day component in USDCAD continues to provide good trading signals with a target of 1.3 achieved from the June low. Now price approaches a 20 week low. We look at the price action from here.
Tools required: Nominal Model | FLD | FLD Trading Strategy | FLD Trading Strategy (Advanced) | Principle of Nominality | Underlying Trend
Analysis Summary
USDCAD made an 80 day nominal low on June 8th before moving up to test the 80 day FLD and achieve targets of 1.295-1.3, described on our last report of 1st June. Subsequently price has moved back down to what is phased to be a 20 week nominal low, shown on all charts below.
From June 1st Report:
We should expect price to test the 80 day and 20 week nominal FLD peaks around 1.3. Price has the potential to move higher from there or the next 20 week nominal low, due in August.
Readers will also note that the 9 year nominal low in the long term chart below, alluded to in the last report, has now been placed at the large trough in June 2021. Although largely academic, this brings commonality to USDCAD and other USD pairs in addition to correlation with the current phasing of DXY.