USDCAD Short-term reversal signs

EURUSD in bullish trend but expecting a reversal
August 23, 2016
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August 23, 2016

The USDCAD is showing signs of reversal and rejection at the 38% Fibonacci retracement and cloud resistance as we noted yesterday. Price is expected to move lower to new lows. Important resistance is the area between 1.2950-1.3050.

USDCAD

With the stochastic oscillator turning lower from overbought levels in the 4 hour chart, combined with a double rejection at the 38% Fibonacci retracement and cloud resistance, USDCAD is expected to move lower at least towards short-term support of 1.2860. The most probable scenario will be a decline towards 1.27.

USDCAD2

On a weekly basis the stochastic shows that more downside should be expected while the weekly kijun-sen is about to cross the weekly tenkan-sen. Being below the weekly cloud and seeing such a cross will be a very bearish signal for the longer-term. As long as we are below 1.32 trend will remain bearish targeting 1.20 and lower.

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.