USD/CAD ABCD Pattern Marks the Support
Admirals | Apr 13, 2017 08:23AM ET
The rate cut wasn’t on the table yesterday as economic data in Canada has improved. Slightly hawkish stance of BOC’s Chief Poloz reflected on the USD/CAD, sending the dollar down straight to W L5 support.
At this point, we see an ABCD pattern at D L3 support, so the break of 1.3250 could spur a correction towards 1.3300 where we see a bearish POC (ATR top, EMA89, bearish order block, W L4) within 1.3300-1.3320. Rejections from POC target 1.3220 and 1.3190.
Keep in mind that if 1.3250 is not broken to the upside, we might see a straight drop below 1.3218 for 1.3190 and 1.3145 final D L5 target.
D L3 - Daily Camarilla Pivot (Daily Interim Support)
D H3 - Daily Camarilla Pivot (Daily Interim Resistance)
D H4 - Daily Camarilla Pivot (Strong Daily Resistance)
D L4 - Daily Camarilla Pivot (Very Strong Daily Support)
D L5 - Daily Camarilla Pivot (Strongest Daily Support)
W L5 - Weekly H4 Camarilla (Strongest Weekly Resistance)
POC - Point Of Confluence (The zone where we expect price to react aka entry zone)
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