Tanalys

USD/CAD Reverses Sharply Just above the 200 Day Average

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Chart Prepared by Jamie Saettele, CMT

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-The last update noted that “the slightly positive tilt of the range following a sharp USD/CAD decline indicates potential for a small bearish flag. Clearly, the March high is critical to this interpretation. Pay attention to the former highs just above 1.3200 for support. 1.3200 is also the 200 day average and a parallel. It’s safe to say that 1.3200 is important in USDCAD and a break below would be an early sign that this horrendous range (from May 2016) is nearing completion.” Loonie went all loonie and reversed sharply today from above the level. The reversal dampens near term bearishness and warns that the decline from March is complete in 3 waves.

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