Bullish Ichimoku Cloud with horizontal Senkou Span A and B; a cancelled golden cross of Tenkan-sen and Kijun-sen, the lines are horizontal; the market is still on the support of the Cloud.
USD/CAD: bulls are having troubles
TP1 1.2420, TP2 1.2200
On the daily chart, we see a start of correction to the downtrend towards 23.6%, 38.2% and 50% of the wave CD. It became possible because the “Shark” pattern transformed into 5-0. To confirm their intentions, bulls need to lead the pair outside of the downtrend channel.
On H1, USD/CAD is forming the “Dragon” pattern. Usually the dragon's head forms in the convergence area on the levels of the dragon’s head (1.2610-1.2635). If bulls fail to get above the resistance, risks of the “rising wedge” will increase.
We've got a bearish "High Wave", which has strong confirmation. In this case, the price is likely going to decline.
Growing concerns over Greek bailout, early elections in Italy and comments by the ECB President Mario Draghi about the need to maintain the bank’s extraordinary amount of monetary policy support…
The 144 Moving Average has acted as support, but there's a bearish "Engulfing' at the local high.