News & Analysis
Eightcap Forex technical insights; USDCAD forms V pattern but seller hurdles remain.
After a two-day decline, buyers did start the week stronger, sellers emerged during last week’s equity sell-off. This wasn’t a deep two-day retracement after the USDCAD surged on the 10th of October.
Looking at the Daily chart we can see a clear V pattern, these can be a good sign for buyers in a market that’s trying to change momentum. While the underlying pattern remains bullish sellers look to have a few points of strength above. Buyers might find it hard going on the short term due to current congestion. Sellers are fading this morning’s rally, with further resistance seen at 1.3040 and 1.3065. On the short term, 1.3030 has confirmed as 1-hour resistance.
We would like to see 1.3030 hold for buyers on the short term to show demand remains. If sellers can close below 1.3030 we will be looking for a deeper retracement which could also put pressure on the V pattern depending on the depth sellers reach.
Good trading from Eightcap
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