The US Dollar continued to enjoy nice gains against a basket of currencies, including the Canadian Dollar. The USDCAD pair surged above the 1.2450 resistance area, and might spike one more time before it reverses. There was a monster resistance at 1.2450, which was breached earlier. If the mentioned break was a false one, then we could witness a nice bearish reversal in the short term. There is a crucial event in Canada, as the BOC interest rate decision is lined up, which might ignite swing moves in USDCAD.
Technical Analysis
Daily – Critical bearish trend line on the daily chart, plus a bearish divergence.
Daily – Monster resistance around 1.2460-1.2500.
Entry:
H1 – We can enter a sell trade for the USDCAD pair once the pair fails below 1.2440, settles below it and retest in two waves.
Target 1: 1.2340
Target 2: 1.2310
Stop Loss: A 4H close back above the 1.2450 resistance area.
Video Explanation:
Yours,
Vladimir
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