Why USDCAD started up trending and if its going to continue or respect the Fib are and reverse?
1. First significant up volume wave.
2. Little volume down waves.
3. High Speed Index of 40.9 - which means too much volume for this pip move and since we broke up these were buyers on the down move.
4. Down Waves with High Speed Index of 22.7 and 28.5 - could have been the first push downs since we are on fib.
5. Down Wave again with High Speed Index of 30.6 and since we broke up resistance easily most probably these were buyers so Fib is not going to hold and will continue up
On the hand if it hits 61 Fib and breaks down below 50 Fib with high volume - it will crash down because all these high speed index would have been sellers pushing down.
Be patient and monitor this area.
Even though we did not hit 61 Fib we had a false break a bit above resistance and move down with volume breaking the support of this range.
Therefore all the high SIs at the bottom of the range were sellers pushing down.
What is going to happen next? Well the forecast to go Short.
What did I forecasted above ? It will crash down and this exactly what happened 100 pips down ,Smart Money was prepositioning before todays news.
Conclusion : Learn to read the market, the old days that we jumped on a trend do not happen very often. The market is changing every day , do not trade because an indicator says so. Personal advise without volume into the game is like trading blind.
