The USDCAD pair has fallen over 2000p since the highs established a year ago.
The past week ended with a nearly 300p upward candle that completely engulfed the preceding , forming a bullish engulfing formation. MACD in an upward phase.
- bullish engulfments on the daily and h4
- iH&S under construction
- payrolls on Friday
On the daily chart we also deal with a bull market. Currently the prices are just above the formation. It looks like a typical re-test of the maximum of the pattern, which was defeated two days ago, and it may indicate an upward correction. MACD is rising.
On the H4 chart we see an inverted H&S under construction. The hypothetical neckline is currently about above 100p.
There is a high probability of growth, however one should take into account Friday’s report from the US labor market -payrolls-, which may increase volatility on dollar pairs. Buying is trading against the main trend, so increased caution is recommended when deciding to open an order.
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