$USDCAD View H4 – In a correction channel

Lud Trader

Active Trader
Nov 3, 2017
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Lately, our predictions on the USD/CAD was bullish while prices were contained inside the bullish channel (black lines). I am wondering about the nature of this channel. Candlestick show a lot of overlapping which suggest that ^this is not an impulse but a retracement phase. A breakout to the downside is expected. If this were the case, it makes the most sense to look for a selling opportunity after a pull back. For the moment, prices remain in a neutral area, while they are above the upward oblique line below the resistance level at 1.2820.

On the daily graph (below), prices did not bounce off the oblique line as we could have expected in the case of an impulse. We will know more shortly, and maybe before the FOMC tonight.
 

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