The downward trend on USDCAD had lasted for 11 days and is down 3%. The whole movement contains two waves. Each bottom touched the lower Bollinger Bands. Does this movement remind you of something? I would think about the Elliott Wave. It looks like an unfinished Elliott wave.
Usually, we know that the Elliott wave contains three waves. The price line has already finished two of them, and has reached a peak; will the price fall soon? The price line touched the 38.2% Fibonacci level and also broke out the upper Bollinger Band. This brought resistance pressure on the price line.
Also, the MFI went up to above the 80 level, which means it is currently unstable. Besides, the Williams R% and Stochastics both went into overbought; putting bearish pressure on the price. Here we must be careful and patient. The price could break down at any time. Make sure you are ready when the time comes.
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