Cad Gets Held In An Institutional Range

Price action has seen very thin trading volumes lately, stopping the pair from moving too far either way. This is happening as cadstruggles to push below the 1.0200 area, the main support zone of the last 19-months of trading. In order to break and hold lower from this point, Usd/Cad will need much stronger volumes and momentum.

Overall View: Looking for low of an impulsive decline.

4 Hour Chart Flows: Short. Price Points: 1.0223 Looking for: A near-term low

Momentum: The cad trend moved short in the middle of February, after a period stuck in neutral. The pair can be just as easily bought as sold right now.

Elliott Wave: No change on Usd/Cad after very slow price action over the past few days. A turning point on the Long side of the pair is expected, since we can clearly count five waves of decline from 1.0679 top, which is called an impulsive structure. The market is likely to make at least three waves of an upward corrective move in the near-term.

Before we can confirm a near-term bullish reversal, we need to see impulsive intra-day price action on the upside, and 1.0320 resistance broken.

The bullish divergences on the RSI and MACD indicators also signal for higher prices in the near term.

Written by TheLFB Trade Team, © 2007-2008 LFB Services, LLC. All rights reserved. http://www.TheLFB-Forex.com

TheLFB Risk Disclaimer can be found at http://www.thelfb-forex.com/content.aspx?id=174.

The Copying, Broadcast, Republication or Redistribution of TheLFB Content is Expressly Prohibited Without the Prior Written Consent of LFB Services, LLC.