CAD lost half of its gains today as WTI bounced back from the 35$ level where the bulls came back into control, but for how long? WTI D1 EMA’s are showing signs of wanting to fall lower. In respect to the USDCAD price found resistance on the H4 @ the 150 EMA of 1.32 which is also our R1 on the Weekly pivot points. Technically having started the week off the Weekly Pivot point we could expect to reach R2 by the end of the week.
Looking at the D1 price seems to have rejected the 21EMA level and has given us another bearish signal, but like the signal on friday I would tend to ignore it as we did close with a positive wick by the end of day. If on the other hand we do see some bearishness we might want to keep our eyes opened for the 1.295 area as we spoke about in previous posts. This pair really looks like it’s in a slow transitional phase.
In the long term looking at the monthly, we began the month off the Monthly M2 pivot point which normally predicts an M4 by the end of month which ends up to our predicted sell zone area between the 38.2% and 50% retracement of the last move.
Plan Safely, 🙂