Forex Trading Library

USDCAD – Limited downside

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Monthly: We had an impulsive rally from the 2011 low (0.9407) to the 2016 high (of 1.4690). The correction lower found buyers close to the 50% pullback level of 1.2049. Mixed trading for the last 27 months looks to have formed a bullish descending wedge formation.

USDCAD - Limited downside 1

Weekly:  The weekly chart highlights the wedge more clearly. The sequence for trading is higher highs and higher lows. A break of 1.3140 (lower highs) and the measured move target is the start of the wedge formation at 1.4690

Daily: Daily chart highlights an Elliott Wave completion at 1.3123 (bullish 5-waves) followed but a 3-wave correction lower. Buyers re-emerged under the 61.8% pullback level of 1.2580 (from 1.2245-1.3123). We have broken the channel to the upside

USDCAD - Limited downside 2

Intraday (four-hours) – Stalls at the intraday 261.8% extension of 1.2882 (from 1.2527 – 1.2657). Although we have seen a correction lower, we look for this move to be mild and temporary. Channel support is seen at 1.2792. With bespoke support at 1.2790, this is our prime zone to get long

USDCAD - Limited downside 3

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