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FxWirePro: USD/CAD forms Bearish Gartley Pattern, good to sell on rallies

  • Harmonic pattern formed – Bearish Gartley Pattern
     
  • Potential Reversal Zone (PRZ)- 1.3280.
     
  • Loonie has recovered sharply from the low of 1.30683 on account of rate divergence between U.S and Canada but rising oil prices weigh on the Canadian dollar .
     
  • The greenback strengthened after the release of U.S ISM manufacturing index data. The index rose to 51.5 last month compared to August’s reading of 49.4.
     
  • Short term trend is still bearish as long as resistance 1.3280 holds.
     
  • On the higher side, any break above 1.3280 confirms the minor bull trend , a jump till 1.3300/1.3360 is possible.
  •  
  • Loonie’s major support is around 1.31500 and any break below targets 1.3100/1.3068 (55- day EMA)

It is good to sell on rallies around 1.3230 with SL around 1.3280 for the TP of 1.3150/1.3100

               

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