NZD And AUD Versus The Canadian Dollar In Anticipated Turn Around

Other commodity currencies against the Canadian dollar can be now losing strength as we see both NZD and AUD dropping against the CAD. However, looking at the weekly charts of NZD/CAD and AUD/CAD we also see that a big triangle on one end can be coming to an end, while the other flat correction on the AUD/CAD can also be near completion. If that is the case, and both NZD/CAD and AUD/CAD stay positively correlated, then we may expect to see a break higher on both pairs, and a loss in strength on the Canadian dollar. Ideally, we will see NZD and AUD regain strength at the end of the year and next year.

Also, in terms of Elliott wave theory, we know that a triangle is a continuation pattern, and unfolds prior to the final wave, while an EW ending diagonal is a powerful reversal pattern and can cause a sharp reversal into the opposite direction.

NZD/CAD, Weekly

AUD/CAD, Weekly