AB=CD formation to find buyers in USDCAD
There is scope for further losses this week in USDCAD but dips to be bought
Weekly: Last week’s price action resulted in USDCAD trading to the lowest level in 5 weeks. However, we are assessed as being inside the large Descending Wedge formation that has an eventual bias to break to the upside. On a move through 1.3173 (trend of lower lows) the measured move target is near 1.4600. # note a move lower from 1.3148, the 127.2% extension (from 1.2055-1.2915). . Bespoke support is located at 1.2633
USDCAD weekly 1
From a different outlook this highlights a Fibonacci confluence area
USDCAD weekly 2
Daily: Moving lower within a bearish channel formation. The aforementioned bespoke support level (of 1.2633) is located between the 50 and 61.8% pullback level (of 1.2684 and 1.2580). Current trendline resistance is located at 1.2870
Intraday (eight-hours) – A full AB=CD corrective formation from current levels is located at 1.2640. We look for this are to hold (1.2640-33) and buyers return.
We look to Buy at 1.2640-30 area
Stop: 1.2480
Targets: 1.2850 and 1.3170
UPDATE – (15:12 10/04/2018) The move to 1.2630 triggered our long trade
