USD/CAD: Top formed - Commerzbank

Axel Rudolph, senior analyst at Commerzbank, suggests that the USD/CAD pair has formed a top at 1.3467 in early March and that it did so at the end of an abc Elliott wave correction from the February low at 1.3070.

Key Quotes

“While the 1.3467 high isn’t bettered, we will continue to expect the 200 day moving average and the seven month uptrend line at 1.3198/96 to not only be reached but for these levels to also be slipped through.”

“The 2018-19 uptrend line at 1.3065 represents our downside target. Further down sits the October trough at 1.2783. Were the March high at 1.3467 to be exceeded, however, we would have to turn short-term bullish and target the December and January peaks at 1.3661/64.”