USDCAD - READY FOR BREAKOUT? / RETRACEMENT?
Pair looks somewhat interesting to watch closely. First of all Price Objective for major Bullish Rectangle has been met. Though after several days of struggle and consolidation (within the smaller rectangle) it finally hit target. Most traders would probably have gone short on the long bearish candle and Stop losses just right above it or above the rectangle which coincidentally is PO for broader/major rectangle and all stopped out of their trades.
I look forward to price reaching the 1.4300 level (strong confluence point) and an eventual breakout to the downside. Price levels to watch out for also drawn on chart including PO for rectangle (distribution zone range), fib 0.236 & 0.382 retracement levels.
Summary
Patterns identified
1. Distribution zone (Rectangle). Don't seem like a reversal to me at the moment.
2. Bump and Run (with targets 1.3950 - 1.3700) though not in the short term.
A push up and close above 1.4400 (fib. retracement, 0.118) could nullify this analysis.
I look forward to price reaching the 1.4300 level (strong confluence point) and an eventual breakout to the downside. Price levels to watch out for also drawn on chart including PO for rectangle (distribution zone range), fib 0.236 & 0.382 retracement levels.
Summary
Patterns identified
1. Distribution zone (Rectangle). Don't seem like a reversal to me at the moment.
2. Bump and Run (with targets 1.3950 - 1.3700) though not in the short term.
A push up and close above 1.4400 (fib. retracement, 0.118) could nullify this analysis.
Note
Zoomed out to show Major structure/pattern with PO.
Note
We have USD and CAD news tomorrow. Stay tuned.
Note
Just a little bit skeptical price may want to repeat history (1.4660) just for the sake of history and being close to previous high it may want to touch it once more.. Looking at the much broader range structure on the W1 TF.
Well, we'd expect huge volatility tomorrow. Lets see how this plays out. But whatever the case I'm looking forward to shorting this pair.
Note
Price bounced off 1.4300 rectangle support and approaching fib ret. 0.118 level/1.4400. Well we stay tuned till after the news. No rush.
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