USDCAD Overview

USDCAD Overview

4h chart shows the downward wave-channel. We can detect 2 attempts to break out above the top wave-line of the downward channel. Both attempts have no great success as price is still trading around the line. This behavior suggests, bears are controlling the zone around top-line. In this case, the movement toward the centerline becomes more real. So, the idea of decline has a priority.

Let’s analyze clusters from the futures market. Note, 6C is the reversed version of USDCAD.

We have there:

  • 1) Selling pressure wave (notice big red delta bars)
  • 2) Erase of bearish progress on the previous down-wave 1.

    If futures were really weak, it would resume downward movement (bullish move on USDCAD).

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