Canadian Dollar Update

5 Sep 2016

As expected, the price action came up to the Apex point of the triangular formation shown on the chart and bounced back down from this point. The major Head and Shoulders formation still holds. The triangular formation was broken out a couple of weeks ago, which indicated weakness. The return to the Apex and then the sharp decline again points to the continuum of the weakness of USD against Canadian dollar. It is more likely than not IMO, that this pair will continue falling down up to the neckline shown on the chart. Current formation may be very well the beginning of a 3rd wave down. It wouldn't be that surprising that we see a quite strong down pulses in the coming days and weeks, quickly bringing the price to 1.26 levels. Definitely not a good time to go long. Wait for short term overbought indications and sell short at those points. You won't regret. Good trades.