Forex: USD/CAD slowing ahead of parity, still below 0.9950

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FXstreet.com (Barcelona) - USD/CAD is currently at 0.9942, same prices was printing during the London morning yesterday. In between has reached a daily and weekly high at 0.9960, ahead of the NY session, followed by NY session low during the opening at 0.9920, tightening the range since then, in a simetrical triangular fashion. The pair is higher since last weekly close past Friday some +0.52%.

According to Fan Yang from FXTimes :"The USD/CAD rallied sharply after bouncing off 0.9840. The rally is now challenging the bearish outlook, but so far still leaving it intact," adding: "But a break above 1.0050 would be needed to introduce a bullish outlook outside of the short-term, intra-week period."

From an Elliott wave count perspective, Mr. Yang points out: "The wave count labeled in the 4H chart essentially suggests we have completed an impulse wave down. Now this latest 5-wave swing could be also a terminal wave of a wave-3 of a decline that started at the Nov. high seen in the daily chart. That means this current rally could be wave 4, and that is why it should stay below 1.0044, hence a break above 1.0050 will likely invalidate this current count and open up a bullish outlook to follow an already completed ( A )( B )( C ) correction."

Support to the downside finds its key level at 0.9887 which "will become an important pivot above which we would show completion of wave ( C )", as Mr. Yang suggests.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Forex and Currencies

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