Eight years after starting this blog in 2008, the Federal Reserve has raised rates only once, in December 2015. The .25% rate hike coincided with a Wave 5 top on the monthly chart of most emerging market currencies, including the Dollar / Ruble (USD.RUB). Of these currencies, I’ve selected the USD.CAD (Canadian Dollar) and the USD.ZAR (South African Rand) because of their chart formations.
The Dollar Cad is set for a Wave 3 Elliott Wave move. In order to protect against a missed drop through support, I’ve set a sell stop with a sell limit set above the market at weekly resistance.
The Bank of Canada issues a rate statement in two weeks on 4/13 at which point I expect the BOC to sell strength in the Canadian economy. Until then, after the strong US jobs report on Friday, a pullback to weekly resistance is possible. I’m positioned for both outcomes.