USDCAD testing both its resistance and support!

Apr 3, 2018

USDCAD is being squeezed by both its resistance at 1.2937 (38.2% Fibonacci retracement, horizontal overlap resistance) and ascending support line. If it surpasses its 1st resistance, it could potentially rise to its 2nd resistance at 1.3000 (61.8% Fibonacci retracement, horizontal pullback resistance). If it breaks past its ascending support line, we could see price falling to its 2nd support area between 1.2786 and 1.2762 (38.2% Fibonacci retracement, 50% Fibonacci retracement, 61.8% Fibonacci extension, horizontal pullback support).

Stochastic (89, 5, 3) is in the middle which presents a neutral idea. We did however identify a bearish divergence with price.

Apr 4, 2018

Trade closed: target reached

Bearish divergence proved right and price broke out of its ascending support line and reached our support target!