USD/CAD GANN and Price Action Analysis

USD/CAD has stopped falling but the lack of a significant rebound in the US Dollar so far provides no real confidence that the market has found a base – even though the 50% Fib retracement support is a natural for a base level.

Current Scenario

on Thursday, cycle study reveals that market remain in bearish cycle and on Friday, price corrected its cycle against the bearish cycle. Corrective cycle is struggling at 23.8 Fib Level and seem to maintain Thursday bearish cycle momentum.

Channel study reveals that the channel is slightly bearish and in the long run is in a sort of big amplitude range cycling. Further, USD/CAD shows lower high and at the moment is struggling at inter channel running support with in the big channel.

Within the bullish channel the pair has a bearish retracement and struggling at decision making level to form a flag pattern, it will break the bullish Channel forming bearish channel on breakout of the flag.

GANN study of natural levels reveals that price is struggling at GANN natural level of 90 with high probability of downward breakdown to go to GANN level 90 as an acting natural resistance.

GANN 144 Square study revelaed that price is in in decision zone of equilibrium level of 180 Degree with probability to break out either in any direction. However, swing study and price action study revelaed that it has high probability to break downward.

Prognosis

Short-term price patterns suggest downside risks remain fairly high at this point, with the 1.3350 level capping minor gains through the overnight market. Trend momentum is slack on the short-term study, however, suggesting that the USD may continue to range trade near-term, but price still risks retesting yesterday’s low at 1.3275/80 at least. The Feb/Mar bull run up in the USD has clearly been checked but broader signals are not, yet, signals that a trend reversal is developing. We may remain broadly range bound over the next few weeks.

GANN LEVELS

Pivot: 1.33522

Support: 1.33789, 1.34150, 1.34452,

Resistance: 1.33207, 132847, 132382