Valuation of USD/CAD - where is reversal likely to take place??
The typical measures used to value USD/CAD are providing a mixed picture but on balance I think it favours even further downside. In addition, notice that USD/CAD has been closely following a very defined market structure. For those that don't know - bank algorithms and institutional trading activity will be very active at 50% moves from a significant impulse or defined price bracket (see my earlier post about NZD/USD) and will often reverse / pause at a 200% move. By structuring the market in this way you can see how USD/CAD has closely followed it. I have marked two areas for where a potential reversal may occur based on the market structure for UC. Personally I favour the lower level at the 1.3200 area
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