USDCAD: Hurst Cycles - 9th Feb 2022

US Dollar - Canadian Dollar | Phasing Analysis Update, Outlook & Trading Strategy

Tools required: Nominal Model | FLD | FLD Trading Strategy | FLD Trading Strategy (Advanced) | Principle of Nominality

Phasing Analysis

Long Term

Components greater than and including the 18 month nominal cycle

Medium Term

Components less than and including the 18 month nominal cycle

Short Term

Components around the 80 day nominal cycle

---

Summary

In our last report into USDCAD we outlined two scenarios due to uncertainty around the placement of the most recent 80 day component:

Analysis uncertainties around trough (and peak) magnitude placement are ever present but they very rarely result in directional errors. This forms part of the robust nature of trading using Hurst Cycles. We will revisit this instrument in the coming weeks to update this fascinating position.

Time has elapsed and clarified the phasing (as it always does!) with the 2nd scenario established. The 80 day nominal low occurred around the 19 of January.