USDCAD – Reversal pattern is forming on daily chart

Slobodan Drvenica Windsor Brokers

USDCAD

The pair bounced above 1.2700 handle on Monday and signaling reversal after pullback from 1.2916 peak found footstep at 1.2665 where daily Kijun-sen contained dip. Morning Doji star is forming on daily chart as recovery rally surged through thick hourly cloud (1.2689 / 1.2707) with next barrier at 1.2724 (Fibo 23.6% of 1.2914/1.2665 pullback) coming under pressure. Near-term techs turned into bullish setup and support further advance which may extend towards next pivotal barrier at 1.2760 (Fibo 38.2% of 1.2914/1.2665). Broken 20SMA/hourly cloud top offer immediate support at 1.2705, with cloud base marking lower pivot (1.2689) loss of which will soften near-term structure and risk retest of key 1.2665 support.

Res: 1.2740; 1.2760; 1.2790; 1.2819
Sup: 1.2705; 1.2689; 1.2665; 1.2628

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

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