🍁It's hard not to acknowledge the fact that USD/CAD has shown strength in recent days.
🍁 Breaking out of the support zone heading towards a strong resistance zone then making a correction.
🍁I still think we have a lot of space for upside.
🍁Turning to the chart.
🍁Looking at the breakout dynamics in the last few days and the strong selling interest in the Canadian dollar. It just confirms me in my upside scenario.
🍁 Particularly the 29th price move surprised investors by performing a whole 1.77% upside move measured from daily low to high.
🍁I determined the support zone based on a cluster of two fibo measures. The first is the level of 0.236 of the entire upward wave from the 2011 bottom to the 2016 peak. The second level is 0.618 of the entire downward wave from the 2002 peak to the 2007 bottom.
🍁 The resistance zone ahead was also determined by a cluster of two fibo levels. The first is 0.618 of the entire downward wave from the peak in 2016 to the bottom in 2021. The second level is the 0.5 level of the entire upward wave from the 1991 bottom to the 2002 peak.
🍁The scenario I am playing out on this pair is a continuation of the upside to the area around the resistance zone. Where I will watch to see how the price will react in order to predict the next movements. I am aware of the possibility of a correction at any time, this should be taken into account, If the outlook would change I will publish a post with an update, so I encourage you to actively follow the profile and read the description carefully.
🍁 *Please do not suggest the path I have drawn with the lines this is only a hypothetical scenario.
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