USDCAD after its U-shaped corrective structure was extended beyond our levels of expectations with breakouts from some major resistances i.e 1.24673, 1.2610 and now finally at 1.28200. Currently loonie is trading around its monthly resistance two (MR2); this level has seen mostly consolidation in the past along with weak demand and more supply, depriving the pair off its ground with more bearish pullbacks. The bullish correction initiated from 1.20000 wasnt expected to be extended to this level because of the irrational and noisy reversal waves. This compelled us to recount our waves on the weekly time frame which is more clear; its almost the end of final corrective wave c of higher degree and only awaits us for a fractal confirmation. USDCAD is currently taking a reversal from 61.8% fibb level which is another indication of an expected pullback. 

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

The bullish channel or rising wedge for some is defining the pairs bullish limit for now and is proving us with an appropriate level to adjust our bearish positions. RSI and MACD are showing overbought conditions and USDCAD will drive itself a bit lower to adjust its technical indicators and then initiate its bullish mood but that has to wait until the reversal is completed. Our weekly pivot is situated at 1.25547 which is the expected targeted destination before any further bullish move. Another excuse for the pair according to the technical analysis is our EMA50; this will be the refueling station to the pair where we will count the waves and observe the formed structure before providing any further directions of loonie. The upper and lower trend lines of our channel defines the recent supports and resistances where we will be taking our precautionary measures as well interms of Loonie giving any short term reversals or maybe breakout as well. Follow our prescribed stop loss and take profit figures for now until USDCAD is ready to generate any further upside momentum.  

LOONIE READY FOR SELL

Jul 20 2021

Stop Loss -0.65%

Holding time 7hr

1.27280

Entry price

1.28110

Stop loss price