USDCAD Daily Perspective

10 ביולי 2015

The daily chart shows recent higher highs and higher lows, how ever the new higher high failed to reach January and March peaks thus creating a bearish engulfing formation. However we do need confirmation of a reversal in order for our short bias to come in play. If we zoom into the lower time frame (1HR) we can see a wedge/pennant forming. Price has currently found support around 1.266 area. A close below this can lead us to potential targets of 1.52. If price holds above this we would consider this as a short term corrective with long targets of 1.2786 - 1.2838 (Jan and March Peaks). Any suggestions welcome.

TRADE UPDATE 13/07/15
Daily high of 1.2789 reached our long target of 1.2786