USD/CAD Channel Center Line and Neckline Confluence

Chart Prepared by Jamie Saettele, CMT

DailyFX Trading Guides and Forecasts

Real Time Positioning

-As noted last week, the USD/CAD reversal from above 1.3200 “dampens near term bearishness and warns that the decline from March is complete in 3 waves.” A bullish USD/CAD doesn’t jive with a broader USD breakdown but maybe CAD is a sale on crosses at this point. Either way, pay attention because a break through the December-March line (testing now) would complete a head and shoulders continuation pattern (origin of pattern is the November high).