USDCAD Intermediate Top (D)
Created on Thursday, 24 September 2015 08:53
Written by Austin Galt
The USDCAD currency pair looks to have made an intermediate top today so let’s take a look using the daily chart.
USDCAD DAILY CHART
We can see price has moved up sharply over the past few days and looks to have put in a top today at $1.3418 before reversing back down and closing the day in the red.
The Bollinger Bands show this top traded well above the upper band which is a common trait found at important highs.
I have drawn a Fibonacci Fan which shows price recently breaking below the 61.8% angle. Price looks to have made one last pitch and getting back above it but resistance looks to be solid and price was turned away.
The top set up a quadruple bearish divergence on the RSI just to finish off the job.
The Stochastic indicator shows the averages had diverged and they now look to be coming back together with a bearish crossover looming large.
The Momentum indicator shows the uptrend has been losing momentum since June 2015.
Summing up, today’s bearish reversal candle signals an intermediate top is now in place. We will analyse the longer term picture in the next newsletter.