FX: Euro/US Dollar; USD Dollar/Canadian Dollar
Price held the supply zone, resulting in a pullback from the bearish engulfing at 15:00 (SA time) on 21/02. Price is nearing prior breakout zone i.e. prior resistance which is also in line with the 0.618% Fibonacci Retracement level as well as the 4H 200-SMA. Short term I’ll be looking for support in this area for a potential scalp/intra-day rebound.
Whilst the pair has traded in a sideways range over the 2 month period, a technical bull flag structure has developed which potentially sees a break of the consolidation zone. The price currently trades close to the incline support however a break below 1.3850 potential sees the downside ‘gap’ act as a target. Also keep in mind we could see a false break lower before regaining support hence traders should keep an open mind for all potential outcomes.
USDCAD | Monthly still sees a massive rounding formation targeting further upside. (Expect pullbacks in between).
Trading Desk Analyst
Unum Capital (Pty) Ltd
An Authorised Financial Services Provider (FSP 564)