By Admiral Markets
The rate cut wasn’t on the table yesterday as economic data in Canada has improved. Slightly hawkish stance of BOC’s chief Poloc reflected on the USD/CAD, sending the dollar down straight to W L5 support. At this point, we see an ABCD pattern at D L3 support, so the break of 1.3250 could spur a correction towards 1.3300 where we see a bearish POC (ATR top, EMA89, bearish order block, W L4) within 1.3300-1.3320. Rejections from POC target 1.3220 and 1.3190.
Keep in mind that if 1.3250 is not broken to the upside, we might see a straight drop below 1.3218 for 1.3190 and 1.3145 final D L5 target.
Follow @TarantulaFX on twitter for the latest market updates
D L3 – Daily Camarilla Pivot (Daily Interim Support)
D H3 – Daily Camarilla Pivot (Daily Interim Resistance)
Free Reports:
Get Our Free Metatrader 4 Indicators - Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter
Get our Weekly Commitment of Traders Reports - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.
D H4 – Daily Camarilla Pivot (Strong Daily Resistance)
D L4 – Daily Camarilla Pivot (Very Strong Daily Support)
D L5 – Daily Camarilla Pivot (Strongest Daily Support)
W L5 – Weekly H4 Camarilla (Strongest Weekly Resistance)
POC – Point Of Confluence (The zone where we expect price to react aka entry zone)
Article by Admiral Markets
Source: USD/CAD ABCD Pattern Marks the Support
Admiral Markets is a leading online provider, offering trading with Forex and CFDs on stocks, indices, precious metals and energy.
