USDCAD Weekly TF
As far as we are concerned, the Loonie has skyrocketed since 11th October and now it is pullback time. In this analysis I am using Elliot wave, Fibonacci Extension and Structures methods.
We can see that the wave (v) has reached 1.27 fibonacci extension if we drag the fibonacci from a higher high on 27th September to the higher low on 10th May and RSI (7) indicator also indicating overbought condition. The previous structure is the peak of wave (iii) on 27th September as major resistance. I predict that the price will pull back around 1.3400 which now becomes the support level. Â
USDCAD Daily TF
It is very clear on the daily timeframe that the Loonie is in overbought condition according to the RSI (7) indicator, and now is searching for a retracement. If we drag fibonacci tool from the swing low on 15th October to swing high on 18th December, the market is more likely heading toward a 50 or 61.8 retracement.
This analysis recommends a Short position for USD/CAD for the target half of wave (v) around 50 or 61.8 fibonacci retracement levels. Good trading and Merry Christmas 🙂
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