USDCAD Top-Down Analysis

Hello Traders,

Here is the Top-Down Analysis of USDCAD (Monthly, Weekly, Daily for direction and 4H for entry) for

Week 41 - 06 Oct

M > After facing rejection at monthly support price moved up and to test resistance level. Between these two levels price had created range in past.

W> We could see M formation and price moved up to test the neck and then dropped for a pull back. We can see another M formation and price can move to test its neck.

D > Last bearish move respected the channel it created and now we can see price respecting the upward channel that it has created with bullish move.

As per COT CAD saw closure of both Long and Short positions, N-R saw addition of Long and Short positions and Commercials saw closure of both Long and Short, confirming weakness of CAD for the said week. CXY gained strength last week.

4H > Price dropped below channel to test daily support, we expect price to reverse at this level and continue with its bullish move.

Pair Correlation > USDCAD has negative correlation with CADJPY and AUDJPY.

This was my Idea and I hope you find it useful. If you find the analysis of help please leave a LIKE and FOLLOW for receiving all updates during the week. In the comment section you can share your view and ask questions.

Thank You
AP17FX