USDCAD reversing nicely, remain bearish

Published on: 2018-02-13 01:29 GMT

Sell below 1.2654. Stop loss at 1.2766. Take profit at 1.2270.

Reason for the trading strategy (technically):

Price has started to reverse nicely from our selling area. We remain bearish below major resistance at 1.2654 (61.8% Fibonacci retracement, 61.8% Fibonacci extension, Impulsive Elliott wave structure, horizontal overlap resistance, shooting star reversal) and a strong reaction could occur at this level to push price down towards 1.2270 support (Fibonacci extension, horizontal swing low support). We have to keep a watch out on intermediate support at 1.2382 (Fibonacci retracement, horizontal overlap support) where another bounce might occur.

Stochastic (89,5,3) is dropping nicely from our 95% resistance level.