USDCAD Testing Its Resistance, Prepare For A Reversal

FX:USDCAD   U.S. Dollar / Canadian Dollar
Sell below 1.2927. Stop loss at 1.3000. Take profit at 1.2759.

Reason for trading strategy:

USDCAD is testing its resistance at 1.2927 (61.8% Fibonacci retracement , horizontal overlap resistance) where we expect to see a reversal, causing price to fall to its support at 1.2759 (38.2% Fibonacci retracement , horizontal overlap support). We do have to be cautious of the intermediate support at 1.2818 (23.6% Fibonacci retracement , horizontal overlap support).

Stochastic (34, 5, 3) is approaching resistance at 96% where a corresponding reversal is expected. We have also identified a bearish divergence with price which contributes to our bearish bias.

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