USD/CAD Keeps Selling On Rallies In A Strong Zig Zag

Nenad Kerkez

The USD/CAD has been in a strong downtrend after a break of a trend line (blue) indicated by a failed W bullish pattern in uptrend (green rectangle). At this point we see a strong bearish zig zag targeting sub 1.2800 levels, if the pair proceeds with downtrend. Retracement to POC targets 1.2910-25 zone (61.8, historical sellers, H4 cam DPP, EMA89). If we don’t see a pullback towards POC then we will need watch for h1 momentum or 4h close below L3 – 1.2850 that could tank the pair down to 1.2788. Below 1.2788, the pair is targeting 1.2722.

USDCAD Hourly Chart

USDCAD Hourly Chart

Source: admiralmarkets.com

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