Forex Trading Library

USDCAD – Correction lower looks complete

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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 36 months looks to have formed a corrective channel. Trend line resistance is located at 1.3790. Trend line support at 1.1682

Weekly:  Reacting lower from levels close to the 61.8% pullback of 1.3685 (from 1.4690 – 1.2061). Bearish Outside Candle posted, often an indication that the rally has come to an end. Mixed trading for the last 5 weeks has highlighted the possibility of a higher correction.

Daily: An Elliott wave formation locks to be complete to the upside. An AB-CD correction can also be noted. There is scope for a bullish reverse Head and Shoulders forming. A break of 1.3330 is needed. A break there and the measured move target is 1.3600

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