USDCAD: broke below 1.39750 key psychological and snapped back above support (fake out). Price managed to close off a strong daily candlestick which engulfed six days of daily price action (notice the size of the daily engulfing).
Scaling down to the 4hr time frame we can see price ranging between 1.39500-1.45000. Also notice how price broke above this down trend and is on the way to retest support, the trendline, 61.8% fib retracement, and 1.39750 quarterly psychological zone. If price shows any signs of rejection or manages to maintain above this zone, then look to buy USDCAD to 1.45000 key psychological zone. However, if we violate this zone then we must reevaluate price action. Due to uncertainty of market fluidity, risk management is highly recommended.
Scaling down to the 4hr time frame we can see price ranging between 1.39500-1.45000. Also notice how price broke above this down trend and is on the way to retest support, the trendline, 61.8% fib retracement, and 1.39750 quarterly psychological zone. If price shows any signs of rejection or manages to maintain above this zone, then look to buy USDCAD to 1.45000 key psychological zone. However, if we violate this zone then we must reevaluate price action. Due to uncertainty of market fluidity, risk management is highly recommended.
