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FOREX Technical Analysis: USD/CAD Reverses Course at Former Congestion

FOREX Technical Analysis: USD/CAD Reverses Course at Former Congestion

Jamie Saettele, CMT, Sr. Technical Strategist

Daily Bars

FOREX_Technical_Analysis_USDCAD_Reverses_Course_at_Former_Congestion_body_usdcad.png, FOREX Technical Analysis: USD/CAD Reverses Course at Former Congestion

Chart Prepared by Jamie Saettele, CMT

FOREXAnalysis: No change - “The USDCAD rally from September is in 5 waves therefore the reversal should be respected. The most common retracement area following 5 wave movements is the former 4th wave, which comes in at 9874. The USDCAD reversed sharply before reaching 9900. The corrective nature of weakness from 10056 is suggestive of a move back towards parity. Given the length of time that the rally from 9632 consumed, it’s more probable that the 3 wave decline from 10056 is just wave A of a larger corrective pattern rather than the entire correction.”

FOREXTrading Strategy: Strength into parity may present an opportunity to short for a larger decline towards 9874. If the USDCAD trickles lower from the current level, then the next opportunity will be on the long side at lower levels.

LEVELS: 9835 9874 9894 9960 10009 10056

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

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