USDCAD – Last week I analysed this pair and the Inside Bar then created. Today another Inside Bar was created by the last daily candle in November. The range of the IB formation is 120p. Today’s quotations have opened up with a considerable downside gap, which was not completely closed, there was a shortage of about 15p. The price left the IB thru the bottom and dropped 75p to the level of 1,3160. Currently, we have an upward correction towards the lower IB limit and the support of the growth channel, which also has been defeated today. It can be said that we have a confluence of resistances, which have a common level of 1,3240. It seems very likely that the pair will return to declines when it reaches this area.
On chart H1 we can see a situation where EMA144 last week was a respected as dynamic support, which today was defeated and tested from below as resistance. This situation supports the bearish scenario. An attempt to close the gap cannot be ruled out, therefore SL should be above it.