USDCAD:-The End Of The Bullish Run?
USDCAD:- The pair has had many traders prospering in recent weeks as it surged its way towards 1.3000, having almost tapped the price point to the absolute T!
The key psychological level seems to have held as resistance. Before the previous Fridays dump in price it had been tested and rejected on 3 occasions before closing 200 pips lower just above the Monthly level of 1.2800.
What can we expect now?
The weekly candle formed incredibly bearish and therefore would be considered a potential reversal signal having formed at the top of the uptrend. We await the follow through momentum to occur and break and closure below the 1.2800 level for the opportunity of a short to arise. The pair previously found its self-stuck within a range of 250 pips between 1.26650 and 1.29100. Any break beyond 1.28000 would potentially lead us to revisit the supportive lows of 1.26650.
Investors will be stalking over the coming days as there is a variety of fundamental news announcements being released including PPI, Core CPI and Retail sales. If these data releases were to be weaker than forecast we most defiantly could see the begin of a bearish cycle for the pair.