USDCAD is looking bearish after a turning point from 1.0418 where a three wave rally from 1.0180 most likely completed a corrective retracement labeled as (a)-(b)-(c). Notice that pair already took out the lower trendline of a corrective channel that usually leads to a continuation of a larger trend. In our case larger trend since early September is down so we expect more weakness in days ahead and possibly revisit of 1.0180 level, probably next week. Based on the latest price action from 1.0418 we see prices moving down in third leg of decline which is ideally wave (iii) that will accelerate to typical 161.8% Fibonacci target once the lower line of a base channel is taken out. Critical, short-term invalidation level is now at 1.0390.
We recommended strategy for shorts to our members two days back. If you want to receive similar trade ideas then make sure to check our services.
If you are interested in our analysis then you can try us absolutely FREE FOR 7 DAYS!
Visit http://www.ew-forecast.com/service/ for more details
- Forex Analysis
- Stock Market Analysis
- Commodities Analysis
- Traders Corner
- Contribute to Forexhound
- Author Login