Canadian back to parity with the US Dollar?

Not sure if parity will be back that soon but we might be getting close. For this post I have two chart to review which have the USDCAD going as low as 1.0400 in the upcoming weeks.




First there is the 4hour chart (also can be seen on the daily chart) which shows a beautiful triangle which started all the way back in October 2008. At the time of me writing this blog the pair is about 150 pips away from the bottom of the triangle. If we are to cross below the bottom and break the triangle at around the 1.1900 levels, we can see the pair trickle all the way down to 1.0200 if we go by the assumption that a triangle break equals the the distance between the first bottom and first top of the triangle (we can call that the mouth). The opening of the mouth is from 1.1300 to 1.3000 or 1,700 pips! Which is were I got the 1.0200 target earlier.




The second chart we can examine is the weekly chart which shows a DeMark/Mouteki break setting up. The pair is currently below the break line so an entry as these levels would be good. The break will be confirmed if by the time the new candle forms we are still below the trend line. The target for the break is at 1.0670 which is around 1,420 pips from were we are today.

Lets wait and see what happens by Friday (1/30) and if we stay below the trend line we should definitely short this pair!