Aiming for the trader's success by creating awareness of the 3M's: Mind, Money & Method by 
With the USD gaining strength and Oil retreating from its highs, could we be looking at a change in trend?
Too early to call for a reversal, but a strong pullback certainly on the cards.
Comparing the different financial instruments, we know that Oil and the Canadian Dollar have a strong correlation.
So if the USD is rallying against the majors and oil is pulling back from its highs, the one currency pair which should have a double effect is the Usd/Cad.
As expected, this currency pair broke all short term resistance levels with unprecedented momentum.
Now the question is where will it stop?
As usual we try and use fib targets, or harmonic targets to get a target zone.
In this chart we have identified a bullish Gartley pattern. 
Now this pattern was not traded, but identified only after looking back for some target zones.
(Its always easy to look back at a static chart and identify patterns…right??)
But keeping in line with our topic, I want to point out the basics behind the harmonic pattern. That price does move in a particular pattern, and one only needs to be aware of this fact to gain an edge.
Which can be seen by the fact that price formed another harmonic pattern on its way to achieving the target of the first one. 
Now one can also plot the fibs on the second harmonic pattern, but my point here is that it is the very nature of price to form such patterns.
In any case, price has crossed the expected target of the initial Gartley (the 161.8 fib of A-D) and looks poised to go further.
So we can expect some more bullish moves on this one, before we can identify another harmonic pattern.
Sunil.