Wheat vs Canadian dollar Technical Analysis - Wheat vs Canadian dollar Trading: 2021-11-02

Wheat vs Canadian dollar Technical Analysis Summary

Buy Stop: Above 1000

Stop Loss: Below 875

Indicator Signal
RSI Neutral
MA(200) Neutral
Fractals Buy
Parabolic SAR Buy
Bollinger Bands Buy

Wheat vs Canadian dollar Chart Analysis

Wheat vs Canadian dollar Technical Analysis

On the daily timeframe, WHEAT/CAD: D1 is in a long-term uptrend. The price crossed the resistance line, the upper border of the triangle. A number of technical analysis indicators have formed signals for further growth. We do not rule out a bullish movement if WHEAT/CAD rises above the last daily high and high since March 2008: 1000. This level can be used as an entry point. The initial risk limitation is possible below the Parabolic signal, the lower Bollinger line and the 200-day moving average line: 875. After opening a pending order, move the stop following the Bollinger and Parabolic signals to the next fractal low. Thus, we change the potential profit/loss ratio in our favor. The most cautious traders, after making a deal, can go to the four-hour chart and set a stop-loss, moving it in the direction of movement. If the price overcomes the stop level (875) without activating the order (1000), it is recommended to delete the order: there are internal changes in the market that were not taken into account.

Fundamental Analysis of PCI - Wheat vs Canadian dollar

In this review, we propose to look at the Wheat versus Canadian Dollar Personal Composite Instrument (PCI). It increases with the rise in prices for wheat on the world market and the weakening of the Canadian currency. Is the growth of WHEAT/CAD quotes possible?

Wheat quotes may rise due to the European Commission’s message that the harvest in Europe in the agricultural season 2021/2022 may be 700 thousand tons less than the previous forecast and amount to 130.3 million tons. Grain production is expected to decline in France, Romania and Hungary. Remember that in the previous season 2020/2021, the wheat harvest in the EU amounted to 117.1 million tons. Earlier, the United States Department of Agriculture (USDA) cut its forecast for the wheat harvest in the season 2021/2022 to 44.8 million tons. This is 10% less compared to the previous season 2020/2021. Note that the export of wheat from the United States over the past time of the 2021/2022 season decreased more. It is 22% less than in the corresponding part of the previous season 2020/2021. In turn, the weakening of the Canadian dollar may occur against the background of the correction of prices for natural gas, oil and coal.