USD/CAD forms Bearish Gartley Pattern, good to sell on rallies
Harmonic pattern formed – Bearish Gartley Pattern.
Potential Reversal Zone (PRZ)- 1.3280
Loonie has recovered sharply from the low of 1.30683 on account of rate divergence between U.S and Canada but rising oil prices weigh on the Canadian dollar .
The greenback strengthened after the release of U.S ISM manufacturing index data. The index rose to 51.5 last month compared to August’s reading of 49.4.
Short term trend is still bearish as long as resistance 1.3280 holds.
On the higher side, any break above 1.3280 confirms the minor bull trend , a jump till 1.3300/1.3360 is possible.
Loonie’s major support is around 1.31500 and any break below targets 1.3100/1.3068 (55- day EMA)
It is good to sell on rallies around 1.3230 with SL around 1.3280 for the TP of 1.3150/1.3100
Potential Reversal Zone (PRZ)- 1.3280
Loonie has recovered sharply from the low of 1.30683 on account of rate divergence between U.S and Canada but rising oil prices weigh on the Canadian dollar .
The greenback strengthened after the release of U.S ISM manufacturing index data. The index rose to 51.5 last month compared to August’s reading of 49.4.
Short term trend is still bearish as long as resistance 1.3280 holds.
On the higher side, any break above 1.3280 confirms the minor bull trend , a jump till 1.3300/1.3360 is possible.
Loonie’s major support is around 1.31500 and any break below targets 1.3100/1.3068 (55- day EMA)
It is good to sell on rallies around 1.3230 with SL around 1.3280 for the TP of 1.3150/1.3100