USDCAD selling the rallies

USDCAD bullish trend challenged
January 21, 2016
Morning FX view
January 25, 2016

USDCAD has made a fully bearish reversal as our expectations and has reached the first target area of 1.4150 in a 5 wave downward pattern. This implies that a major top is in and we should expect more downside over the coming weeks-months.

USDCAD2

Oversold indications and mutli divergence signals are there for some time. Now we also have the price reversal to confirm that a major corrective decline has started that could even push towards the 38% Fibonacci retracement area even as low as 1.29. So now we have entered a period where I believe rallies should be sold.

USDCAD

USDCAD is testing the lower boundaries of the medium-term bullish channel, but I see 5 waves almost or nearly complete, this is not the time to sell, but it is preferred to wait for a bounce towards 1.4350 or higher to open short positions with 1.4690 stop.

Good luck and thank you for taking the time to read my thoughts.

Alexandros Yfantis
Alexandros Yfantis
Fascinated by financial markets, studied International Securities Investment and Banking in the UK, works as a Portfolio Manager in Greece and runs a technical analysis website. Enjoys travelling and spending time with his family and preparing for the black belt in Korean Karate.