Waiting for a Reversal Lower

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Updated: 11 February 2020

Good day traders! The USD/CAD currency pair has enjoyed a strong run higher since the start of this year. Price is currently trading at a previous resistance zone where previous highs were formed last year, and a 0.618% Fib retracement level resides.

If price can break that resistance zone to the upside and enter the 1.3382 – 1.3435 price zone, where both an upper median and 0.786% Fib retracement level lie, then I will be interested in a short.

Conclusion:

A bearish weekly candlestick could confirm that USD/CAD has started a move lower which could extend towards the 1.3186 and 1.3117 price levels.

Bias: Bearish

Potential Resistance Zone: 1.3382 – 1.3435

Potential targets: 1.3186 and 1.3117 (after a weekly reversal candle)

Until next time, happy and safe trading!

Richard Krugel