Why I am watching the CD$ closely

Alright folks, let’s take a look at the Canadian dollar ticker is six C ETF traders can trade the ETF f x c Francie X ray Charlie FX, see if you want to trade the ETF. Now, as you can see over here on the weekly chart we have been consolidating here. Since about October or November of last year, the ranges are getting tighter and tighter rather coiling up. Now, Canadian dollar is closely associated with the crude oil market because of its stature as an exporting country, not quite seeing the volatility that we’ve seen in crude oil market. But what we’re looking at here is we’re looking at this market, basically forming a wedge, consolidating triangle, whatever you want to call that over here, on the longer timeframe. these trend lines that I drew on the weekly are now carried over to the daily to encapsulate this is the sideways range. So it looks like the market is continuing to get tighter and tighter coiling we know that if we keep coiling, it’s eventually going to bust out the effect of a spring. Now one thing of interest here is if we take a look at the Canadian dollar from a seasonal perspective, notice that right here, we have a 515 and 30 year historical price averages, you see all that right here, Red Five year, black, 15, year pink 30 year, they’re all basically converge right here in the middle of March. And they do what they go higher, does not mean that the Canadian dollar will go higher this year. I’m simply showing you what this market has done over the last 515 and 30 years of data, which we know the data does not lie. Furthermore, our smart market scanner, look at this type of action here over 16 years 81% win rate, the average profit has been $1,800. That equates to 180 ticks, each tick is $10. So it’s roughly 180 ticks, let’s just round it up. We’ll call it 200 200 ticks. So let’s take a look at charts and see what could happen here. Now what we would be doing obviously is is favoring the upside because of what I just showed you here. And what I just showed you here, bullish trade set up around mid to late March at 1% win rate. So we are favoring the upside, however, we could get a break to the downside. But what we’re looking at here, we got a lot of support a lot of support coming in here at 77 Half ish. If we break, we’re going to be targeting basically the base of this triangle or wedge again, whatever you want to call that. And we would measure up. So that takes us to about 8300. Now if we break out here about 79. That’s more than that 200 takes average. But this would be a natural target up here, because this was the last main area of structure and it fits the breakout pattern almost to the tick. So that’s pretty cool. One thing you could do is head down to the lower timeframe, which I like to do so it could be the four hour or the hourly and look for entry signals. So like right here, I’ve got price alerts down here 7767. You can see the lowest we went was 7769 I never got alerted because we never hit my 7767 price target doesn’t mean that we can’t come back down here. But if we do come back down here, and we tag this 7765 67 area, you can bet I’m certainly going to be interested as a buyer, because that’s going to be testing all the support right here. And I’m gonna be looking to take that next leg higher. Now if we don’t come down here and I don’t get that retest. I’ll be setting price alerts up here around 7900 to 7925. And I’ll look for new entries up here and see if I can catch that move up to about this 8200 to 8300 target area.