USD/CAD - Weak rally signals bearish sentiment

Alan Collins 3cAnalysis

Contrary to yesterday's bearish forecast a sequence of 4 down days ended. The stalling at the 100 day mvg avg proved important and led to consolidation. A profit taking rally attempt was limited though with Wednesday’s top not retested and the market failing to clearly break back above the 13 day mvg avg. The weakness of the rally has been emphasised by renewed selling in Asia and so this morning’s call is a Sell but leaving room to Sell any Rally to 1.3338, Asia’s high. The risk is 1.3373, Wednesday’s peak, with an immediate target of 1.3286, this week's low. A move through that point then exposes sentiment to 1.3256 and 1.3234, March 1^st Marabuzo line.

Weak Rally

USDCAD Current Trading Positions

Sell 43%

Buy 57%

Avg Sell Price 1.3367

Avg Buy Price 1.3260

Liquidity Distribution

Author

Alan Collins

3cAnalysis

Alan has been involved in the financial markets for more than 30-years.

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