USDCAD at Resistance Zone, await Reversal Pattern
USDCAD has reached an important zone after multiple higher low swings and now we have reached a major resistance zone of 1.3340-50.
For a reversal, we would like to see some sort of pattern here. Either some sort of fake out pattern, a double top, a prolonged range, or even a head and shoulder. We will wait for this pattern, and the key would be a break below the 1.3260 zone which is the swing we are playing with, and is a flip zone looking back.
If we do break below here with a pattern, then we shall await for a lower high swing which would ideally come from a retest from this break. We will target the 1.32 zone.
Check out my post on Oil as well. The Loonie has a correlation with oil, and we have a potential 4 hour set up for oil longs which could be a confluence for this USDCAD trade.
For a reversal, we would like to see some sort of pattern here. Either some sort of fake out pattern, a double top, a prolonged range, or even a head and shoulder. We will wait for this pattern, and the key would be a break below the 1.3260 zone which is the swing we are playing with, and is a flip zone looking back.
If we do break below here with a pattern, then we shall await for a lower high swing which would ideally come from a retest from this break. We will target the 1.32 zone.
Check out my post on Oil as well. The Loonie has a correlation with oil, and we have a potential 4 hour set up for oil longs which could be a confluence for this USDCAD trade.
