So let me explain what you see in more details although very obvious.
we gonna see the same down side (white arrow on C leg ) on D leg to complete the bigger picture.
My forecast on shorter time frame is that market breaks (yellow arrow) the blue horizontal line then the down move begins.
on the fundamental side of my forecast I came up with 2 important reasons.
Monetary policy: Central banks (like the US Federal Reserve and Bank of Canada) can change how much money there is and how easy or hard it is to borrow money.
They did this a lot in response to the COVID-19 pandemic to try and keep the economy stable.
These changes can affect how much people want to invest in a currency, and this can make it go up or down in value.
Interest rates: When it's cheap to borrow money, people might spend more or invest more, which can help the economy grow.
If interest rates are low, it can make a currency stronger because it shows that the economy is doing well.
In this case, the Bank of Canada kept interest rates low to encourage more borrowing and spending, which can make the Canadian dollar go up in value compared to the US dollar.
keep this two reasons in mind and trade with care.
we gonna see the same down side (white arrow on C leg ) on D leg to complete the bigger picture.
My forecast on shorter time frame is that market breaks (yellow arrow) the blue horizontal line then the down move begins.
on the fundamental side of my forecast I came up with 2 important reasons.
Monetary policy: Central banks (like the US Federal Reserve and Bank of Canada) can change how much money there is and how easy or hard it is to borrow money.
They did this a lot in response to the COVID-19 pandemic to try and keep the economy stable.
These changes can affect how much people want to invest in a currency, and this can make it go up or down in value.
Interest rates: When it's cheap to borrow money, people might spend more or invest more, which can help the economy grow.
If interest rates are low, it can make a currency stronger because it shows that the economy is doing well.
In this case, the Bank of Canada kept interest rates low to encourage more borrowing and spending, which can make the Canadian dollar go up in value compared to the US dollar.
keep this two reasons in mind and trade with care.