$USDCAD breaking the long term uptrend

Posted on October 2, 2016
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$USDCAD breaking the long term uptrend

Click on the charts to enlarge

Hello  traders, in this blog article we will take a look at the Canadian exchange rate forecast for the clues is the long term uptrend broken and where are the levels which would indicate this change in a trend from long term uptrend to medium trade downtrend.

On the weekly line chart we have  marked the last higher low in an uptrend 1.2874 level which was broken to the downside in April 2016 and has now become the main resistance level for the long term uptrend breaking and acceleration to the new lows 1.1875-1.2000 zone. With a clear break of this level we would have new medium term downtrend established.

USDCAD long term technical analysis

Additionally, on a daily chart the rising wedge (The Rising Wedge is a bearish pattern that begins wide at the bottom and contracts as prices move higher and the trading range narrows. In contrast to symmetrical triangle, which have no definitive slope and no bullish or bearish bias, rising wedges definitely slope up and have a bearish bias), has been formed and the wedge had the three drives higher now rejected from 200 SMA (Blue line) 1.3227 level and also 38.2%  Fibonacci retracement of the swing low Feb-Apr. 2016. This swing low has broken the 1.2874 level which we indicated as a last higher low in the long term uptrend. This level needs to be watched closely next days and weeks for a possible break out and a definite shift in the long term trend.


However, keep in mind that market is dynamic and the view could change in the mean time. Success in trading requires proper risk/money management, also as understanding of trend trading DNA theory,  and Inter market Correlation analysis of Bitcoin and other asset classes.

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