Yesterday, the USD/CAD currency pair kept local resistance at 1.31650, which caused the bearish sentiment. The trading instrument has updated local lows. The Price Action signals a possible correction of the USD/CAD currency pair. At the moment, the classic pattern of Outside Bar (H4 timeframe) has been formed, which is a reversal formation. The USD/CAD quotes are testing the round level of 1.31000. We recommend paying attention to this situation.
If the price fixes below 1.31000, one should consider selling USD/CAD. The immediate goal for profit taking is the resistance level of 1.30500. In the medium term, the USD/CAD currency pair may reach the level of 1.30000-1.29500. Confirmations and entry points to the market should be looked for on lower timeframes. When tracking positions, we recommend using a trailing stop.
This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.