Simple Moving Average(SMA) 50-period (red), 200-period (bold, gray)
RSI-14 with Simple Moving Average 5-period of RSI attached.
Elliott Wave Principles
Market and Price Action (patterns, candlesticks)
Intraday pivots and Intermediate-term support and resistance
Multiple Time-frame Analysis
Previous: Forex Notes (2/23)
- As expected the USD/CAD continues to be choppy, but retains the bearish bias. The daily chart shows that previously, we had a descending triangle with the base just below 1.0, parity. Now, after some sideways action, we are developing lower highs, but the base is at 0.9820 area. It is not a perfect descending triangle, but the important thing is the dynamics of lower highs, and relatively flat support.
- The bearish targets remain near 0.9710 area, and below that near 0.9360 area. The bullish scenario remains locked away until at least a break above 1.0050.
- The 4H chart chart shows the market hammering at this 0.9820/0.9815 support. The RSI should break back below 40, and below 30 if the bearish scenario is to materialize. As our highs have been lower and lower by increments of about 50 pips, we might expect resistance near 0.90 for the next bullish attempt.
Will the USD/CAD crack below the current descending triangle? We would love to hear what you think.
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