The USD/CAD dropped within the 1.2730-40 zone and we can clearly see an inverted head and shoulders formation at support. The price is currently capped below the EMA89 and we might see few possible scenarios. The drop within 1.2730-40 POC zone could possibly be used for buyers to push the price higher towards 1.2799. If the price makes a 1h close above 1.2800, then 1.2837 should be next. 1.2837 is very important resistance. We might see short term rejections from the level towards 1.2800 but a clear 1h or 4h close above 1.2850 should provide a continuation towards 1.2894 and eventually 1.2990. However a drop below 1.2705 will probably make a bearish move towards 1.2663-1.2650.
W L3 – Weekly Camarilla Pivot (Weekly Interim Support)
W H3 – Weekly Camarilla Pivot (Weekly Interim Resistance)
W H4 – Weekly Camarilla Pivot (Strong Weekly Resistance)
D H4 – Daily Camarilla Pivot (Very Strong Daily Resistance)
D L3 – Daily Camarilla Pivot (Daily Support)
D L4 – Daily H4 Camarilla (Very Strong Daily Support)
POC – Point Of Confluence (The zone where we expect price to react aka entry zone)
