USDCAD Lower High (D)
Created on Thursday, 19 November 2015 02:34
Written by Austin Galt
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.