USD/CAD At Major Inflection Point
Alexandros Yfantis | Mar 20, 2018 10:50AM ET
Last time we talked, USD/CAD was at 1.2850 calling for a move toward 1.31-1.32 with an upside that had lots of room to run. So we nailed that move. The big question now is whether we've seen A top or THE top in USD/CAD?
Price remains inside the medium-term upward sloping channel. Support is at 1.2930 and rising. So a break below that area will increase the chances of a major top dramatically.
Short-term support is at 1.3050. From current levels we could see a push toward 1.3130 or higher again, but if we break below 1.3050 I believe we could test the big support at 1.2930-1.2950.
My most probable scenario is that we see a pull back toward 1.30, then new highs toward 1.32 or higher as we near the long-term resistance trend line and then get rejected for the major reversal back to 1.20.
So since Monday, I’m selling this pair for at least a small pull back. If this unfolds into a bigger turn, time will tell so be patient and use stops.
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