USDCAD has been in a downtrend since March 20th of this year; that is when the current trendline, visualized in this chart, commenced. Price has pulled back to this trendline, is just below the 50 SMA and the 200 EMA, and not too short of the 50% retracement line from the recent swing high to swing low. The candlesticks over the past few daily trading sessions...
We've been seeing CAD strength, as well as JPY weakness over the past few trading sessions......and so long CADJPY was only a matter of time. And now, the time has come! :) I'm going long at 94.33, where we have a support level that recent candlesticks are forming a wick around, suggesting buyers are stepping in to defend. Also of note is the presence of the 50...
You can see the clear levels as prices dropped and are now rising towards the sell zone. I'm long at this bottom edge of consolidation and will exit at the red line, then reverse and short it.
The primary wave pattern shows, that the Aussie should on the verge of completing its 5 EW pattern against the CAD$. Therefore a final rally of around 400-500 pips can ensue completing this pattern. In the meantime a minor correction, before the final wave up, should be on the onset. Having said this, the count of 1.062, remains not activated and a break above...
There will be some important announcements coming affecting the CAD/USD.
It would be hard to make a prediction at this point but a buy stop or sell stop on either side could be a good idea.
Time (April 16th) Country Event Importance
2 am (9 pm ET time) China GDP q/y High
2 am China Industrial Production y/y High
2 am China Fixed Asset Investment...
