USDCAD Candlesticks and Ichimoku Analysis

	Last Candlesticks pattern	Time of formation	Trend bias
Weekly	Morning star	Nov 2007	Sideways
Daily	Shooting star	1 Apr 2009	Down

Although the greenback continued to move higher from recent low of 1.0784 and although gain to 1.1815 cannot be ruled out, as this move is still viewed as retracement of recent decline from 1.3066 top, upside should be limited to 1.1914-1.1925 (current level of the Ichimoku cloud top and the 50% Fibonacci retracement of 1.3066 to 1.0784) and price should falter well below 1.2192/94 (previous support turned resistance and the level of 61.8% retracement), then the currency pair shall turn south again from there.

On the downside, below support at 1.1445 would be the first sign that top has possibly been formed but it is necessary to see a weekly close below the Ichimoku cloud bottom (now at 1.1365) to confirm this view and bring further fall to 1.1100, then test of 1.0942. Looking ahead, only below 1.0942 support would signal the major decline from 1.3066 top has resumed for retest of 1.0784.

Based on ActionForex.com Technical Outlook

TAGS / No tag for this post

These icons link to social bookmarking sites where readers can share and discover new web pages.