USD/CAD Bullish but Watch for Possible Bearish SHS Pattern

February 07, 2017 10:56

The USD/CAD spiked above the inner trend line with a strong marubozu candle making the POC zone strong enough on a possible retest. 1.3110-30 (H4, trend line, EMA89, ATR pivot) hasn't been re-tested yet on 4h time frame and subsequent retest could spike the price even more higher, towards 1.3220 and 1.3290. 1.3220 is strong resistance and only 4h close above, might spike the price towards 1.3290 otherwise it might give us short term bearish opportunities. If that happens, the USD/CAD will form bearish SHS pattern (head and shoulders) and we could see a rejection towards 1.3130 zone again. The pair is bullish until 1.2960 breaks to the downside. If that happens 1.2900 and 1.2800 will be exposed. The USD/CAD analysis is valid till the rest of the week. so traders should focus now on either POC rejection or a counter trade opportunities.

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