USD/CAD forming a really strong reversal, remain bearish

The price is now testing major resistance at 1.2654 (61.8% Fibonacci retracement, 61.8% Fibonacci extension, Impulsive Elliott wave structure, horizontal overlap resistance, bearish price action) and a strong reaction could occur at this level to push the price down towards 1.2270 support (Fibonacci extension, horizontal swing low support). We have to keep a watch out on intermediate support at 1.2382 (Fibonacci retracement, horizontal overlap support) where another bounce might occur.

Stochastic (55,5,3) is seeing major resistance at 96% where a corresponding reaction could occur.

Sell below 1.2654. Stop loss at 1.2766. Take profit at 1.2270.


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