TumeloDon

USDCAD Monthly - Flat Correction

Long
FX:USDCAD   U.S. Dollar / Canadian Dollar
FX:USDCAD

Good day.

We take a look at USDCAD pair that has been dropping now for a long number of months.

A closer look at the pair seems to show that we are in a long-term flat correction , therefore trading within a range.

It is not yet clear in which direction this pair will breakout, but for now it seems we remain in the range.

Our bias is that we will now test the upper level of the range to either break above or form the D-Leg of this correction, meaning the bulls might just take over for the next forseeable future.

We will continue to monitor the pair to establish continued bearish movement or a bullish reversal.

Thanks and Good luck.

Comments

Hi there. Thank you for the analysis. Any ideas as to what could cause a bullish reversal? Trying to become educated on both sides of the coin here. Thanks a lot.
Reply
TumeloDon timeforclass1999
@timeforclass1999, Hello. Well, I would like to think Global Macro Fundamentals drive the markets, as well as forces such as supply and demand. So basically, things such as inflation, GDP, CPI etc. With those in mind, there is a desire or lack thereof from investors which then drives the prices of the market.

In this case, also, in terms of technical analysis, the support level below the current price will determine how things go. Should price fail to break below, we can expect a bullish impuse maybe follwed by a retest of support. Ultimately, should price fail to break below and our bullish impulse is good enough, we will then have a strong case for a bullish reversal.
Reply
@TumeloDon, Thank you so much for your detailed explanation. I appreciate it. Cheers!
Reply
TumeloDon timeforclass1999
@timeforclass1999, A pleasure, bro.
Reply
interesting, lets see how the market develops. 🦐
Reply
TumeloDon plancton0618
@plancton0618, Very interesting, also considering how this affects other correlated pairs. Thanks.
Reply
Home Stock Screener Forex Screener Crypto Screener Economic Calendar About Chart Features Pricing Refer a friend House Rules Help Center Website & Broker Solutions Widgets Charting Solutions Lightweight Charting Library Blog & News Twitter