a nice wolfe wave pattern is seen on 4H timeframe and we should keep an eye on the reversal zone of the pattern and any divergence of MACD
.we are using overlapped kijensen and tenkensen of ichimikou as target zone when the price is reversed ,depicted on the chart .these target are aligned with wolfe wave pattern structure
we also should analyze USDCAD structure and movement as these two pair and commodity are inversely and heavily correlated.
Because crude oil exports account for a large portion of U.S. currency that's earned by Canada, movements in the price and the volume of crude oil have a significant impact on the flow of U.S. dollars into the Canadian economy.
When oil prices are high, the amount of U.S. dollars Canada earns on each barrel of oil it exports will be high. Therefore, the supply of U.S. dollars flowing into Canada will be high relative to the supply of Canadian dollars, resulting in an increase in the value of the Canadian dollar. Conversely, when the price of oil is low, the supply of U.S. dollars will be low relative to that of the Canadian dollar, resulting in a decrease in the value of the Canadian dollar.
.we are using overlapped kijensen and tenkensen of ichimikou as target zone when the price is reversed ,depicted on the chart .these target are aligned with wolfe wave pattern structure
we also should analyze USDCAD structure and movement as these two pair and commodity are inversely and heavily correlated.
Because crude oil exports account for a large portion of U.S. currency that's earned by Canada, movements in the price and the volume of crude oil have a significant impact on the flow of U.S. dollars into the Canadian economy.
When oil prices are high, the amount of U.S. dollars Canada earns on each barrel of oil it exports will be high. Therefore, the supply of U.S. dollars flowing into Canada will be high relative to the supply of Canadian dollars, resulting in an increase in the value of the Canadian dollar. Conversely, when the price of oil is low, the supply of U.S. dollars will be low relative to that of the Canadian dollar, resulting in a decrease in the value of the Canadian dollar.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.