USD/CAD – Approach Bearish Reversal Levels

3 min read
HubertM

HubertM

Forex broker

Dear Traders,

The USD/CAD produced a strong bullish breakout last week. But the currency pair now finds itself near a completion of a larger pattern. Today’s anayliss will provide a updated wave analysis and price forecast for the week ahead.

Very Close to Bearish Reversal Levels…

Last week’s bullish impulse catapulted the USD/CAD very close to the upper resistance trend line (black) of the large leading diagonal I have been tracking in my previous USD/CAD posts. This move should complete the entire structure since the Sep 2017 low, and create a sizable bearish correction as Wave 2 after the diagonal gets underway.

The exact reversal spot is tricky to pinpoint however. Last week’s bullish move no doubt shows an impulse with an extended Wave 1. The move came very close to the key reversal area but stopped just shy of the actual upper resistance trend line.

It is possible that the entire swing could have ended already at the high that was created earlier today, which would mean fairly swift follow-through to the downside later today (yellow price line projection).

Alternatively, price could attempt to extend its move upwards, either by creating a larger impulse that will include the extended Wave 1 within it (green count) or morph into an ending diagonal (not shown above). These options would mean a couple more higher highs that will grind towards the upper trend line and the 61.8% Fibonacci Extension Area (i.e. between  1.3260 and 1.33 depending on how deep the current bearish correction goes). This would be my preferred/ideal price-action scenario (for the purposes of entering a short position) because it would provide more confirmation that momentum has been exhausted. The very strong weekly and daily candle closes suggest that a little follow through to the upside is quite likely.

An immediate and strong price drop, which looks out of proportion to the previous bullish move, means that the top is most likely in place already. Short position could then be entered after a bullish 3-wave pullback.

All the best along your trading journey.

Hubert

.

Fibonacci Trading Strategy & Tools

Learn to apply Fibonacci rules and tools in your trading routine.

* free Fibonacci Handout

* actionable trading strategy & faq’s

* precise trading examples 

Free Forex & CFD Range Bar Trading System

In this trading system you will find: 

✅  range bar strategy pdf

MACD Alert

✅  Range Bar EA & Indicators

ecs.heiken-ashi-system & two indicators for trend-following

Two of our favorite indicators for trend-trading. 

✅  ecs.camarilla & ecs.heiken-ashi indicators

✅  actionable trading system & faq’s

✅  precise trading examples 

ecs.camarilla🎯🎯🎯 – versatile strategy & indicator

Nenad teaches how to apply his favorite camarilla indicator

✅  free ecs.camarilla indicator

✅  actionable trading strategy & faq’s

✅  precise trading examples 

ecs.SWAT🎯🎯🎯 – Wave Analysis Trading at It’s Best

Chris goes an extra mile to provide the most comprehensive
wave analysis trading method on the market.

✅  8 hours of video materials via 25 lessons

✅  lifetime access to SWAT indicators & tools

✅  free month of live trading

*Currently 86% of profit setups at entry after the price hits above the 3d or 4th Wizz level 🚀🚀🚀  

Fibonacci Sequence Trading🎯🎯🎯: Wizz Tool & Strategy

Wizz allows traders to know when and where price is expected to accelerate
and show strong momentum.

✅  Fibonacci Sequence Scripts – Wizz*

✅  Handout Strategy

✅  Tips & Trading Wisdom

*Currently 86% of profit setups at entry after the price hits above the 3d or 4th Wizz level 🚀🚀🚀  

ecs.START🎯🎯🎯: Tools, Indicators & Handouts

Our most popular trading tools and wisdom are FREE now. Join and receive a
mix of practical education and actionable trading tools right now.

✅  Fibonacci Sequence Scripts – Wizz*

✅  HA and Fibs Indicators & Handouts

✅  Money Management Tips & more…

*Currently 86% of profit setups at entry after the price hits above the 3d or 4th Wizz level 🚀🚀🚀  

Subscribe to our mailing list

* indicates required


Subscribe to our mailing list

* indicates required


ecs.START🎯🎯🎯: Tools, Indicators & Handouts

Our most popular trading tools and wisdom are FREE now. Join and receive a
mix of practical education and actionable trading tools right now.

✅  Fibonacci Sequence Scripts – Wizz*

✅  HA and Fibs Indicators & Handouts

✅  Money Management Tips & more…

*Currently 86% of profit setups at entry after the price hits above the 3d or 4th Wizz level 🚀🚀🚀