FxWirePro: USD/CAD breaks trendline support amid puzzling trend - don’t jump the gun for fresh shorts

It would certainly not be a downtrend as there is no supportive confirmation by leading indicators even though breach of trend line support. Currently the pair has broken trendline support already; if we have to compare the same with monthly plotting then we arrive with 3 black crows in a row which signals short term correction which has been happening from last 2-3 weeks. Long term charts also evidences the saucer pattern on this pair, a rounding bottom of the prolonged downtrend can used to suggest that the long term trend is reversed.

Since this pattern has been bullish continuation which we've been observing loony losing and dollar gaining consistently along with crude slumps as well. It is now looking to halt the correction mood and shifting back into the business. Our advice is that don't conclude this as trend reversal and initiate fresh short build ups, instead wait for better clarity from leading oscillators which would determine trend directions.

Generally this pattern will have a powerful move of some 10 to 24 months which we already saw since October 2012, for now the pair may have headed towards a market correction mood but sooner bulls may take over. The pair will likely sell off into the correction in a downward fashion for maybe 20 to 35% off the old high point. The time factor is generally anywhere from 8 to 12 weeks depending on the overall market condition. Hence, the overall uptrend in long run remains intact despite the reasonable corrections in short to medium term trend.