USDCAD reversing nicely from our selling area, remain bearish
Sell below 1.2859. Stop loss at 1.2900. Take profit at 1.2708.
Reason for the trading strategy (technically):
Price has been testing our selling area and is starting to form a nice reversal pattern. We remain bearish looking to sell on major resistance at 1.2859 (Fibonacci extension, Fibonacci retracement, horizontal overlap resistance, bearish divergence) for a push down to at least 1.2708 support (Fibonacci retracement, horizontal pullback support).
Stochastic (34,3,1) is showing major resistance at 98% where we expect a strong reaction from. We can also see bearish divergence vs price signalling that a reversal is impending.
Reason for the trading strategy (technically):
Price has been testing our selling area and is starting to form a nice reversal pattern. We remain bearish looking to sell on major resistance at 1.2859 (Fibonacci extension, Fibonacci retracement, horizontal overlap resistance, bearish divergence) for a push down to at least 1.2708 support (Fibonacci retracement, horizontal pullback support).
Stochastic (34,3,1) is showing major resistance at 98% where we expect a strong reaction from. We can also see bearish divergence vs price signalling that a reversal is impending.