Forex Trading Library

USDCAD – Bullish reverse Head and Shoulders forming

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Monthly: We had an impulsive rally from the 2011 low (0.9407) to the 2016 high (of 1.4690). The correction lower found buyers close to the 50% pullback level of 1.2049. Mixed trading for the last 36 months looks to have formed a corrective channel. Trend line resistance is located at 1.3790. Trend line support at 1.1682

Weekly:  Reacting lower from levels close to the 61.8% pullback of 1.3685 (from 1.4690 – 1.2061). Bearish Outside Candle posted, often an indication that the rally has come to an end. Mixed trading for the last 5 weeks has highlighted the possibility of a higher correction.

Daily: Looks to be forming a bullish reverse Head and Shoulders pattern. With bespoke support located at 1.3090, there is scope for further mild losses. A break of the neckline and the measured move target is 1.3590

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