USDCAD Moment of Truth
Prepared by Jamie Saettele, CMT
The USDCAD pattern from the June 1 high is a complex correction. The overlapping of waves highlights the corrective nature while the extent highlights the complexity. 9935/45, defined by several 100% extensions (equality of zigzags) and the 78.6% retracement of the advance from 9799, didn’t give much of a fight (to my surprise). The trendline that extends off of the 2011 and 2012 lows crosses has failed intraweek as well. A Friday recovery would leave a spike below the trendline on the weekly and suggest that the weakness was a trap. Weekly RSI is at a level consistent with long term support as well. The next several days’ action in the USDCAD is paramount to gauging the next large move.
LEVELS: 9799 9850 9903 9950 9988 10065
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.