USDCAD - approaching Potential Reversal Zone (PRZ)
As I had pointed yesterday, the bullish break in WTI oil would push USD/CAD to Cypher Leg D at 1.2616.
The anticipated move has almost played itself out as the pair dropped to 1.2654. . There is still room for a drop to 1.2616. That is the area where CAD bulls need to stay vigilant. The hourly RSI is languishing in oversold territory, while the daily RSI is flirting with oversold level as well.
Hence, we could see a reversal from Leg D level of 1.2616, which could take the pair higher to 38.2% and 61.8% Fib retracement of CD move.
On the downside, traders should watch out for day end closing below 1.26 handle as that could reinforce bears.
The anticipated move has almost played itself out as the pair dropped to 1.2654. . There is still room for a drop to 1.2616. That is the area where CAD bulls need to stay vigilant. The hourly RSI is languishing in oversold territory, while the daily RSI is flirting with oversold level as well.
Hence, we could see a reversal from Leg D level of 1.2616, which could take the pair higher to 38.2% and 61.8% Fib retracement of CD move.
On the downside, traders should watch out for day end closing below 1.26 handle as that could reinforce bears.
