We are at a very crucial point and it is rather difficult to assess in which direction the price will be heading. At this point, the only thing we rely on is the momentum. If the momentum accelerates in the up direction (or down direction), this would be the clue in which direction the price is finally heading. So watch strong "thrust" movements either ways to make your call.
Positive indications:
-Price at the lower long term channel line
-price touching the 200 days MA (YELLOW DOTTED LINE ON CHART)
-Positive divergence on MACD, RSI etc.
-USD Index also touches lower channel band
Negative signs:
-We have a very large Head and Shoulders formation on USDCAD weekly chart. Still in tact.
-Oil surpasses it's own channel band in the up direction, indicating strength in Oil
-The down move from the Shoulder (S on chart) seems to be not a completed wave count, which can turn easily into a 3rd wave downwards.
Positive indications:
-Price at the lower long term channel line
-price touching the 200 days MA (YELLOW DOTTED LINE ON CHART)
-Positive divergence on MACD, RSI etc.
-USD Index also touches lower channel band
Negative signs:
-We have a very large Head and Shoulders formation on USDCAD weekly chart. Still in tact.
-Oil surpasses it's own channel band in the up direction, indicating strength in Oil
-The down move from the Shoulder (S on chart) seems to be not a completed wave count, which can turn easily into a 3rd wave downwards.
Comment:
Today, I think we've got the signal that this pair is weak and bets in the down direction are more validated than long positions. Regards