FxWirePro: USD/CAD forms head and Shoulder pattern, good to sell on rallies
Chart Pattern- Head and Shoulder pattern. USD/CAD has declined almost more than 200 pips in this week from the high of 1.29407. The pair hits low of 1.27445 yesterday. The major dip was due to rising optimism in NAFTA tr…
USD/CAD has declined almost more than 200 pips in this week from the high of 1.29407. The pair hits low of 1.27445 yesterday. The major dip was due to rising optimism in NAFTA trade deal. The pair shown a minor recovery till 1.28066 as US dollar is trading higher against all majors. It is currently trading around 1.27765.
Market eyes US and Canadian employment data which is to be released today for further direction.
Oil price is consolidating after hitting low of $62.05 and commodity jumped more than $1 from yesterday’s low. The commodity was trading weak on US- China trade war.
Technically near term resistance is around 1.2860 and any break above targets 1.2920/1.2950. Overall bullish continuation only above 1.3125.
On the lower side, near term support is around 1.2740 and any break below will drag the pair down till 1.2760/1.2700.
It is good to sell on rallies around 1.2865-70 with SL around 1.2925 for the TP of 1.2780/1.2725.
