The last time I wrote about an expected reversal in USDCAD we witnessed a 100 pip decline from 1.3235 to 1.3134. Price broke out and below the upward sloping wedge and declined as expected. The reversal signal I gave was spot on however the full retracement of the wedge did not occur as this was my initial view. Rude comments regarding my view for a pull back as low as 1.3030 despite the great timing of the reversal signal I gave, were deleted and I would like to take this opportunity to note that people that post for the first time in my comments section and are rude will be blocked from further commenting. If you would like to share your views and ideas in a polite and friendly manner you are free to do so. If you have personal issues do not take it up on me…..go to a psychiatrist.
So what made the visitor post a rude comment? USDCAD reversed from 1.3135 towards 1.3250 where we witnessed last week a double top with a marginal new high and divergence in the oscillators. As I pointed out in twitter the 1.3140-1.3130 level was important support as this was also the neckline of a possible cup and handle pattern.
Price gave us another rejection at the upper triangle boundary and this is not a good sign for USDCAD bulls. However as long as price remains above support at 1.3130 bulls will still have hopes for a break towards 1.33-1.34. I remain bearish USDCAD as long as price is below 1.3250.
Thank you for taking the time to catch up on my thinking.