Adam & EVE Pattern - USD/CAD - Market Insights & Expectations

Greetings Everyone,


Today, we will be taking a quick look at the USD/CAD pair and project potential future price action.

Disclaimer: Please note that this analysis is based on the monthly time frame, and like all projections, outcomes are not guaranteed.

This is not financial advice.

On the chart, you’ll notice the highlighted Adam and Eve pattern, which we'll be discussing in detail.

What is the Adam and Eve Pattern?

The Adam and Eve pattern is a reversal chart pattern often seen in technical analysis. It indicates a potential trend reversal, typically from a bearish to a bullish trend. The pattern is characterized by two distinct bottoms:

1. Adam (First Bottom):
Sharp, narrow, and "V-shaped."
Reflects a rapid sell-off and recovery.

2. Eve (Second Bottom):
Rounded and broader than Adam.
Suggests gradual price stabilization and accumulation.

What does this mean for Canadians?

Summary
- Imported goods will become even pricier for Canadians.
- US nominated investment position will yield better returns. Ie. USD Savings Accounts, US ETFS ie. SPY, QQQ.
- Canadian Corps. that exports good will be benefactors of a higher us dollar.

Thank you for stopping by!

Best,
CL