Saturday, December 16, 2017

USD/CAD Is Testing The Resistance At 1.2900– 1.2920

The pair has been testing the resistance at 1.2900 – 1.2920 for eight weeks and so far it has made four attempts to break out above it as it can be observed on the D1 time frame.

In case a new attempt finally succeeds I think we can expect a rally to 1.3000 – 1.3050 where the pair will encounter a new, stronger resistance.

In my opinion that breakout will happen and the pair will reach 1.3000. I think so due to the pin bar on the monthly time frame with which the rally was renewed. Such a signal on such a large time frame usually applies to the long term.

In case there is a breakout above 1.3000 there could be another rally to 1.3500 – 1.3600.
In the alternative scenario this test of the resistance will fail. In that case we can expect a drop and the first support is around 1.2750, followed by others at 1.2650 and 1.2550.