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
- USD/CAD has been in choppy price action since breaking below parity again at the end of last year. Recent action brought the pair to test 1.0 again, but the strong attempt remains contained below it, as well as the 200SMA in the 4H chart.
- If the market breaks closes the 0.9900 level in the 4H chart, we might see a decline towards 0.9840-0.9850 area, especially if we see a bearish candle with 50+ pips.
- So far within this pattern, we have seen the bullish provide the stronger candles, which is no surprise as the market did rally.
- If the current bearish candles do not expand and close below 0.9910, we might still be bullish, although this bullish scenario is limited to tight resistance levels
- The RSI is still above 40, and with price action above 0.9910, we would have a positive reversal signal, which would suggest another rally attempt to break 1.0, so that might be a target.
- With the upside risk being said, we should consider the other possibility, that the market does break below 0.9900. Will it come down to test the 0.9840-0.9850 lows? If the market fails to test this area, and rallies, we have either bottomed, or we would be in a second correction rally. Either way, we can then again anticipate a rally towards 1.00.
- The daily chart shows these tight resistance levels, until we clear above 1.0100.
Will this choppy pair continue below 0.9850, or are we in a bottoming attempt? We would love to hear from you.
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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.