(Click on image above to enlarge it.)
Here's a weekly chart of the US Dollar Index showing an NMC Cross Kiss Zero Hit buy setup, occurring at the same time as the USDCAD setup and thus helping validate the quality of the formation.
Additionally, NMS was finding the support of its Fast Ocean moving average as the setup formed, and BTX was above 35, indicating that the market was in trend mode. The BTX 2Line had exchanged dominance (the green line crossing above the red line) more than 2 months earlier, tipping us off to the directional bias of the market. In fact, this was the first bullish exchange of dominance in more than a year.
These events signaled the normal preconditions that we see from Ocean formations just prior to (or commensurate with) ballistic moves as seen here in the Dollar unfolding during October 2008.
As a final point, notice the NMC/NXC sell setups seen in August and December 2007, as well as the ones in February and June 2008 while the Dollar index was still in a bearish mode. As you can see, these sell signals were as well-timed as the buy signal that we've focused on here in September/October 2008.
Now let's look at the Canadian Dollar to see if it too was offering any directional clues:
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