FX.co ★ USD/CAD forming a nice reversal pattern, remain bearish

Price continues to test our selling area and is starting to form another nice reversal pattern. We remain bearish looking to sell on major resistance at 1.2859 (Fibonacci extension, Fibonacci retracement, horizontal overlap resistance, bearish divergence) for a push down to at least 1.2708 support (Fibonacci retracement, horizontal pullback support).

Stochastic (34,3,1) is showing major resistance at 98% where we expect a strong reaction from. We can also see bearish divergence vs price signalling that a reversal is impending. A recent break below 87% suggests that a drop is approaching.

Sell below 1.2859. Stop loss at 1.2900. Take profit at 1.2708.