- Daily: The recent USD/CAD correction may be completed at the 50% retracement level – 1.05. The market is also testing a 50-Day MA. If the market is supported here, we may be done with the retracement cycle and another bullish wave may follow. A swing projection will target the 1.10 area.
- 4H and 1H: The market has rallied with strength from the 1.02/1.025 area. A wave count below is valid in the case of continuation. The corrective wave C terminates at 200-MA, and around the area of subwave (iv). This was mentioned in this Wednesday’s chartist corner – that we should anticipate wave C to end near 1.05.
- The 4H stochastic is oversold is rolling/crossing back over. The 1H stochastic also confirms new bullish cycle to begin. The bearish cycle (ABC correction) since 1.0750 has provided a momentum where stochastic would not rally above 70. The momentum of the bounce from 1.05 broke that resistance.
- Another confirmation from the 1H stochastic is a failure to reach oversold area, or better yet above 30. This confirmation would be coincident with a strong rally to end the week, or start the next.
Fan Yang
Currency Analyst
Commodity Trading Advisor
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All screenshots are made from VT Trader 2.0 and are of actual market data at the time of the screenshot.
