UnknownUnicorn540299

USDCAD correction imminent

Short
FX:USDCAD   U.S. Dollar / Canadian Dollar
The pair USDCAD is in a corrective structure.

USDCAD has performed a 38.2 retrace from its top and has now broken out of its upper wedgewall.

This will most likely be a fake breakout, because it is the GANN-resistance which is important here. It is meeting a significant resistance @ overbought conditions and its momentum is stretched and turning.

This will likely send USDCAD into an intermediate cycle low.

If dollar breaks all rules it can theoretically want to also have a fake break-out above the neutral line to touch 50 % FIB. This is however less likely given the circumstances.

Trade safe!
Comment: Dollar seem to be consolidating, possibly for one last move up. I prefer to trade it safe until clear evidence of dollar reversal has been provided. DXY is forming a bullflag. Prepare for perhaps the 50 % FIB test
Comment: We got a blow-off top. I entered my first position. Remember to always use stops!
Comment: We got a second blow-off top. This time it touched the GANN resistance and pulled back sharply. This was the second scenario. The dollar rally up there does not carry any legs (parabolic move just to hit the price level). Expect to see waterfall in the dollar now.

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