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.