newdigital

Daily price is located above 200 day SMA (200 SMA) and 100 day SMA (100 SMA) for the primary bearish market condition with the secondary ranging between Fibo support level at 1.4001 and Fibo resistance level at 1.4689:

• Bearish support reversal level for daily timeframe is 1.3140 so if the price breaks this level - we can see the reversal of the price movement to the primary bearish market condition.
• "Last week the Canadian Dollar reached its lowest level ever on this survey! Given this extreme condition, it is not that surprising that USD/CAD reversed pretty sharply (carving out an outside candle on the weekly chart) after testing the top of the 1-year standard deviation channel and the 78.6% retracement of the 2002 – 2007 decline around 1.4650."
• "The thing everybody is trying to figure out now is whether that was just a minor setback from an obvious overbought condition or the start of something more significant on the downside. The burden of proof is most definitely on the bears here, but given the levels where we failed and the level of sentiment we reached a more protracted correction period would not surprise – especially if the next rally attempts fails (leaving a secondary high)."
• "Gann levels at 1.4085 and 1.3965 are clear downside pivots, but a move under last month’s consolidation lows are really needed signal that a much more serious correction is taking hold. Traction over 1.4650 would obviously undermine this burgeoning negative view."

If the price will break Fibo support level at 1.4001 so the local downtrend as the secondary correction within the primary bullish condition will be started with 1.3140 bearish target for re-enter.
If the price will break Fibo resistance level at 1.4689 from below to above so the primary bullish trend will be continuing.
If not so the price will be ranging within the levels.

Trend:

W1 - secondary correction

more...