We published an article on 7th Aug depicting some neutral sentiments on US dollar versus Canadian Dollar because the market hadnt broken above our 61.8% fibb level in weekly to perform a continuation of bullish trend in daily, instead USDCAD is still accumulating below the major price action and resistance levels i.e 1.2750. In weekly chart, the conclusion we have reached for now is that the bullish correction has been completed and there are no further signs of bulls entertaining the market as of yet and we will be experiencing the continuation of bearish trend - most probably as a retest of our trend line at 1.2290. Observing the market reacting to the aforementioned level and fractals being made would further provide hints and crumbs of where the pair would be leading in long term. In daily chart the market is well below 1.2570 and our 61.8%fibb level while in four hourly chart USDCAD is in an extended consolidation which can be compared to the minor degree of accumulation in daily time frame as well.

BULLISH AND BEARISH MOMENTUM/ CONDITIONS :

As we have explained the factors for bears being in control over USDCAD because of failing to break above 61.8% fibb retracement level with an impuslive bullish fractal, the pair will be seen most probably moving towards 1.2270. There is a minor degree of 5 wave bullish pattern being formed in USDCAD daily chart which will definitely be followed by a bearish correction, this can be a 5 wave bearish corrective structure as well of a higher degree. USDCAD has already taken a reversal from low demand zone 1.2570 with double tops being formed in relative strength index on daily chart as well, all indicating an awaited dovish fall towards our targeted destination. On monday opening of the market we will execute our selling positions from the current market price. 

USDCAD BEARISH

Aug 14 2021