USDCAD Testing Its Resistance, Prepare For A Reversal
Sell below 1.2927. Stop loss at 1.3000. Take profit at 1.2759.
Reason for trading strategy:
USDCAD is testing its resistance at 1.2927 (61.8% Fibonacci retracement, horizontal overlap resistance) where we expect to see a reversal, causing price to fall to its support at 1.2759 (38.2% Fibonacci retracement, horizontal overlap support). We do have to be cautious of the intermediate support at 1.2818 (23.6% Fibonacci retracement, horizontal overlap support).
Stochastic (34, 5, 3) is approaching resistance at 96% where a corresponding reversal is expected. We have also identified a bearish divergence with price which contributes to our bearish bias.
Reason for trading strategy:
USDCAD is testing its resistance at 1.2927 (61.8% Fibonacci retracement, horizontal overlap resistance) where we expect to see a reversal, causing price to fall to its support at 1.2759 (38.2% Fibonacci retracement, horizontal overlap support). We do have to be cautious of the intermediate support at 1.2818 (23.6% Fibonacci retracement, horizontal overlap support).
Stochastic (34, 5, 3) is approaching resistance at 96% where a corresponding reversal is expected. We have also identified a bearish divergence with price which contributes to our bearish bias.