USD/CAD: Daily
Now here’s my favorite break-and-retest scenario playing out on USD/CAD’s daily forex chart. The pair has been in a steady downtrend since March before it found support around 1.0600 and pulled back up to the 1.0900 levels. This could be a huge market correction though, as the pair is now finding resistance at the broken support zone near the 50% Fibonacci retracement level. At the same time, stochastic is starting to move out of the overbought area, reflecting a pickup in selling pressure. If the downtrend resumes, USD/CAD might soon find its way back down to the 1.0600 area or lower.
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