Tuesday, March 06, 2018

USD/CAD Is At A Strong Resistance



USD/CAD reached a strong monthly and W1 resistance marked by the middle line of the Bollinger Bands indicator at 1.30004 and, as it could’ve been expected, stopped for a correction to the downside.

There are no more than 20-25 pips left until the resistance trend line of the supposed wedge (marked in red on the monthly and W1 time frames) and the pair may reach it in the next few days as it develops a sideways consolidation.

From then on there are two logical scenarios:
The first scenario is for a breakout above the trend line and a rally to 1.3770-1.3800. The second one is for a renewal of the drop to the support trend line.

The market will decide which scenario the pair will pick.


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