USDCAD selling the rallies

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.

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