Canadian Dollar Nears Resistance

The Canadian Dollar has been rising since it's March 19th low.  Since that time it has made four measured moves (MM).

The dominant MM had a neutral retracement with extreme 6:24 left-handed skewing.

The 2nd MM had deep retracement with 5:12 left-handed skewing.

The 3rd MM had deep retracement with 4:3 right-handed skewing.

The 4th MM had shallow retracement with 3:1 right-handed skewing.

These MM retracements and skewing can give us some insight on the strength of the up trend.  Strong trends have neutral or shallow retracements with right-handed skewing.  Weak trends have medium deep or worse retracements with left-handed skewing.  This up trend started with a neutral retracement, which is strong.  However, it had left-handed skewing with a 1:4 ratio.  This shows weak momentum.  The next two MM's had deep retracements, which signals a weakening up trend.  It's not surprising giving the skewing on the dominant MM.  Finally, the final MM showed some strength with a bullish retracement and bullish skewing.  This helped push the market higher on the 26th of May, creating the breakout candle of the dominant MM.  Now that we know how this market has rallied, we can determine possible resistance using Fib clusters of the four MM's.

The first major area of potential resistance I see is between 74875 and 76146.  This area contains the dominant MM's 261 extension, the 2nd MM's 261 extension, the 3rd MM's 361 extension, and the 4th MM's 461 extension.  In addition to these fib clusters, we have the 78.60 retracement level of the 12-31-19 high and the 3-19-20 low and the YTD POC level @ 7528.  Finally, we have a VSCORE approaching it's mean.  All these together should create significant upside resistance.  If prices reach this zone and stall out, then I would expect a correction back down to a least 72245.  This is the swing high of the dominant MM.  I will continue to monitor this market as it approaches my resistance zone and give more updates if warranted.