USDCAD Lower High (D)

The USDCAD looks to have put in a lower high below the intermediate top which was set back in September 2015. Let’s review the daily chart.
 

USDCAD DAILY CHART 

 
The horizontal line denotes a previous swing low which price busted thereby putting in a lower low. We just await a lower high to confirm the bear trend and that looks in place as of the 61th November at 1.3375.
 
I have added Fibonacci retracement levels of the move down into the lower low and the first bear rally often makes a deep retracement with this one pulling up just short of the 88.6% level.
 
Using some simple Elliott Wave connotations, I believe the lower low to be the end of wave 1 while price has corrected ABC fashion up to this wave 2 lower high. That being correct means the impulsive wave 3 has commenced.
 
The Bollinger Bands show price has moved away from the upper band and should head now to the lower band with perhaps a little break around the middle band.
 
The PSAR indicator is still bullish with the dots underneath price but I expect that to change after today’s data comes in.
 
The Stochastic indicator has just made a bearish crossover while the MACD looks in the process of doing so also.
 
Summing up, I expect this bear trend to now gain momentum and head to price levels laid out in previous analysis.
 
 

Disclaimer

All information contained in this website is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors. Put simply, it is JUST MY OPINION.

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