-Highly volatile market. (due to recent high speculation on this pair)
-Head and Shoulder formation clearly invalidated by the breakout of the neckline
-Many TF Wave counts indicate the end of cycles one way or another
-Price touching the upper lines of important trend channels
-Divergence on multiple MACDs indicate exhaustion
-and the 2009 very important Resistance is broken for the second time
This is what we can see from the chart analysis. Does it mean a weak market? No, there is still lots of strength. Does it mean that the price will go higher at this level for the next few days and weeks? You can't really tell. We can only speculate at this point in time by looking 2 other things for the USD/CAD pair. The first is the Oil price and the second is the USD index.
The brent oil is nearing the end of the 3rd wave with some strong resistance ahead. This means we may see some bounce back in Oil in the coming days and weeks (Even though major bear trend continues)
The USDollar index shows also some formations. Currently there is a formation is building up and price reached the upper limit lie of this . The index may go down for the coming days for short term.
Considering oil and USD Index, we believe that there will be a correction sooner or later in USDCAD . We prefer to stay on the sidelines and neither going long or short. A correction is required to go long as there is huge lately and position taking is more risky than usual.