USDCAD seems to have completed its correction by creating a U-shape formation and ending its final corrective wave near 1.26000 after a very long bearish rally. Food for thought is that USDCAD retraced exactly from the aforementioned very major price action, secondly it dipped its head below our daily pivot i.e 1.25300 followed by strong bearish candles with breakouts below 1.25000 providing bearish sentiments.  The RSI also made an exit from the overbought conditions while MACD mightve started favouring bears on temporary basis. USDCAD also drove itself below the intraday EMAs which for sure is looking towards the EMA200 now to become its next stop for the pair has also crossed the 50%fibb level. Now this might be a correction within a correction or just a reversal to gain its strength back from EMA200 and monthly - weekly pivots. Our current wave count under H4 time frame is suggesting that this might be a bearish correction for the loonie which might end at our aforementioned levels and the continuation of a bullish ralley will be observed. 

BULLISH/ BEARISH CONDITIONS/ POSSIBILITIES :

What we will do for next week regarding the loonie is to keep it on our watch list along with its monthly and weekly pivots followed by more price action and supply and demand at 1.23300, 1.23000 and 1.22800 for we will be positioning our trades in favor of bulls at these levels. USDCAD breakout below our lower trend line which is near EMA200 will cause a continuation of bearish rally strengthning canadian dollar and putting US dollar under more pressure. A breakout above our upper trend line will be considered as a bullish impulse and will readjust our wave count in concern to bulls and wait for reversal to take better bullish trades. But inorder to go long on USDCAD, we will have to accept the fact that breakout above 1.26000 is a must and visa vis interms of favouring bears a bearish breakout below 1.22800

Is Time to Buy LOONIE ! I dont think So !

Jul 11 2021

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