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    USD/CAD: up-trend with possible correction on horizon

       
    The surge higher on the back of lower oil prices has formed a perfect zig-zag pattern on the daily chart, with wave C now measuring 100% of wave A. This is a marginally bearish configuration as it indicates the pattern may have completed.

    Yesterday formed a relatively bearish long shadow, long candle which could also signal some downside in the short-term, probably at least down to the R1 Monthly Pivot at 1.2655.

    Ultimately the trend remains up, however, so whilst the signs are there for a correction, the pair will probably rise again eventually.

    The R2 Monthly Pivot sits as an obstacle to greater gains at 1.2828, however, and ideally I’d wish to see that level vaulted, which would be confirmed by a break above the March 1.2831 highs, including a 10 point margin, so above 1.2841, targeting round-number resistance at 1.2900 initially.
    USDCAD08

       
    The surge higher on the back of lower oil prices has formed a perfect zig-zag pattern on the daily chart, with wave C now measuring 100% of wave A. This is a marginally bearish configuration as it indicates the pattern may have completed.

    Yesterday formed a relatively bearish long shadow, long candle which could also signal some downside in the short-term, probably at least down to the R1 Monthly Pivot at 1.2655.

    Ultimately the trend remains up, however, so whilst the signs are there for a correction, the pair will probably rise again eventually.

    The R2 Monthly Pivot sits as an obstacle to greater gains at 1.2828, however, and ideally I’d wish to see that level vaulted, which would be confirmed by a break above the March 1.2831 highs, including a 10 point margin, so above 1.2841, targeting round-number resistance at 1.2900 initially.
    USDCAD08


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