USD/CAD may have finished its bull run, as the forex pair is forming a double top pattern that looks ready to break out.
Do you think the price is ready to break below the neckline soon?
Better keep your eyes on these levels so you don’t miss a big move!
Forex USD/CAD for 4 hours Planned by TV
As you can see from the chart above, the pair made two failed attempts to break through the ceiling at 1.3650, a minor psychological mark.
The price returned to test the double neckline around 1.3525, and a break below this support area might confirm that a reversal is underway.
If that happens, we may see a sell-off at least as high as the chart pattern. That would be approximately 125 points yo!
The moving averages suggest that the odds favor more downside in USD/CAD, as the 100 SMA has just crossed the 200 SMA.
At the same time, the pair fell below both technical indicators, so these levels could hold as dynamic resistance levels in the near term.
Just be careful because the stochastic is hovering around the oversold zone to indicate weakening downward pressure. A shift to the upside could mean that buyers are still trying to take over, which could lead to another rally for USD/CAD.
Don’t forget to also keep an eye on the Canadian and US NFP jobs report release to get an estimate of where this one is headed next!