USDCAD – reversal pattern is forming on daily chart
The pair bounced above 1.2700 handle on Monday and signaling reversal after pullback from 1.2916 peak found footstep at 1.2665 where daily Kijun-sen contained dip.
Morning Doji star is forming on daily chart as recovery rally surged through thick hourly cloud (1.2689 / 1.2707) with next barrier at 1.2724 (Fibo 23.6% of 1.2914/1.2665 pullback) coming under pressure.
Near-term techs turned into bullish setup and support further advance which may extend towards next pivotal barrier at 1.2760 (Fibo 38.2% of 1.2914/1.2665).
Broken 20SMA / hourly cloud top offer immediate support at 1.2705, with cloud base marking lower pivot (1.2689) loss of which will soften near-term structure and risk retest of key 1.2665 support.
Res: 1.2740; 1.2760; 1.2790; 1.2819
Sup: 1.2705; 1.2689; 1.2665; 1.2628