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
- The move on Friday was a pullback after breaking below 0.9900 during the week. As strong as this rally was, it is not a bullish signal. It is still below the 0.9980 pivot, support Dec. 28,29, Nov 5-11.
- You can see a huge rejection in the 4H chart. This rally likely shook weaker bears, but the downtrend appears to be resuming. You can see that the important highs continue to be lower than the previous.
- The start of the market saw the market rejected from going back above 0.9900 again.
- As I mentioned last week, the 0.9750-0.9760 target is still in sight, but in the larger context of ranging action, the USD/CAD can be expected to travel with a lot of choppiness.
- A conservative swing projection target can be 0.9790. The bearish move is further confirmed with a close in the 1H chart below 0.9850 with a strong bearish candle.
- Large retracements to 61.8% or even 78.6% can be expected.
Will the USD/CAD reach 2008 lows near 0.9750? We would love to hear what you think.
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Fan Yang CMT
Chief Technical Strategist
Information and opinions contained in this report are for educational purposes only and do not constitute an investment advice. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness. FXTimes will not accept liability for any loss of profit or damage which may arise directly, indirectly or consequently from use of or reliance on the trading set-ups or any accompanying chart analysis.