The price closed with a H4 bullish bar on the chart and with the prices reaching higher highs on the lower timeframe after the opening of the markets on london, the prices formed kind of a bullish pin bar formation with the support level being near a past resistance level that was acting on the USDCAD and that is holding together with a 0.618 fib retracement and the monthly 200 period moving average that is acting as support around 1.2316. On the weekly chart we have also the 50% fib retracement for the past two weeks that is acting as support around 1.2370. Continuing on the technical side the price closed above a bearish channel that was acting on the H1 since Monday.
On the fundamental Besides the Oil prices did new highs for the year, besides this we can see that right now they reached lower lows also so they are supporting the bullish bias for the USDCAD at the moment.
With the release of the Non-Manufacturing PMI today at 10:00 US & CANADA Eastern Time (GMT -5:00) this might be the fuel that drives the USDCAD higher to the past resistance levels around 1.2800.
I do not understand properly your question, if you may ask in a more specific way I can help you mi friend :)
Gameghost
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Iam talking about target of this setup. If 0,618 level(support) didn't break it can be ABCD pattern with 0.618-1.27 movement. So fib 1.27 is near about 1.2900 in price, what do you think about it?
tommyjose92
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Ok! Now I understand, well really the 1.2900 is a possible level if we break the 1.2800 past high, but for what it means to an ABCD pattern created from this 0.618 retracement that is acting as support right now I think we already passed the proper timing for this to happen. Besides this approximately when a 0.618 pattern works, it tend to reach the 1.27BC level 36% of the times for what I have in my statistics, so this is a possible chance also because of the bullish trend that is following the USDCAD at the moment.
I hope this is helpful to you, God Bless You my friend.