USD/CAD: Stalking Sideways Action

• 4H and 1H: The 4H chart shows the market in a possible topping pattern near 1.0680. The USD/CAD has been in an uptrend and a channel, and there is a possibility of another bearish attempt towards the 1.08 area.
• With that said, if them arket breaks above the 1.0680 area, the 1.08 target is imminent.
• However, watch out for clear-outs that may break above for a bullish sign, but is really an exhaustion move to be followed by a decline.
• Now, on the other hand, if the market comes back down and breaks below 1.0550, there are some quick support levels. First of all, the rising channel, and 38.2% retracement levels are important. The first target of the decline is the 1.0470 area, then the.104 area.
• In case a wave v is still to follow, it should not break below 1.04. If the market breaks below1.04, the bullish outlook is in trouble, and most likely, the market will find a range between 1.07 and 1.0.

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.