USD/CAD Failed Bullish SHS Pattern for Bearish Rejection

Nenad Kerkez Top-XE

The USD/CAD formed a bullish SHS pattern (inverted head and shoulders) but it failed to provide a continuation to the upside. The pair is in downtrend and we might see an upside retracement towards POC 1.3080-95 (EMA89, H3, ATR top,38.2,order block). Rejection in the zone should target 1.3050 and 1.3020. Should we see a break below 1.3020, the ATR target might be respected too (1.3009) with a possible extension (overshot) to 1.2992. The bearish scenario will be invalidated at the break of 1.3120 where we might see 1.3140 and 1.3170 in form of short position covering.

USDCAD Current Trading Positions

Sell 33%

Buy 67%

Avg Sell Price 1.3093

Avg Buy Price 1.3117

Liquidity Distribution

Author

Nenad Kerkez

Top-XE

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