USDCAD seems to be following a triangle formation. Currently we are close to the top line of that triangle (some pips away). For short term traders, there could be still a quick in and out for profit, however for longer term traders (trades based on days or weeks), this is a premature up move and we require more signals and confirmations to commit ourselves for a long position. Yesterday, in our Fibonacci level+time analysis we predicted a retracement of 2nd wave to 0.382 Fib level and a fast 3rd move from there to the top line of triangle. We were close in the prediction (see chart). Also note that currently Oil (brent) is following a top triangular formation as well. We estimate that the USDCAD and UKOIL will be somewhat in sync throughout the consolidation period, before firm trends are established.
