Following my analysis in the previous post “160826fr 1700EST New York Close Analysis of WTI-USDCAD correlation”, I am looking for a long entry on USDCAD based on the correlation with WTI Oil.

I’ll be looking for opportunities to enter long, but after such a strong upside move I first need to wait for a probable downside retracement to end.

D1 On D1 price broke the 21EMA to the upside, I expect a retracement to the dynamic level also confluent with previous resistance, and then an upside move.

H4 Same here as I expect a retracement to the Role Reversal Area and then an upside move. I have highlighted with the yellow ellipse the 21/55 cross to the upside.

H1 Here on H1 I fibbed the previous move 2 times: the first time including the spike down to 1.2830, the second time considering the swing low at 1.2882. The first Fib ratio of 38.2% overlaps with the second Fib ratio of 50% in the previous resistance zone highlighted in grey, where also the Monthly M2 pivot is clustered. Should the price visit that zone on monday, that could be a nice Role Reversal area to buy. I'll be looking for opportunities to enter long, but after such a strong upside move I first need to wait for a probable downside retracement to end. I am waiting for new Weekly Pivots at next week market open to asses static and dynamic levels, lines and layers of support and resistance, and draw the trade plan for the week.

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