USD/CAD is Below the Chuvashov's Fork

Overnight support was found on Oil, as prices have begun to rise once again. This is positive for CAD relative to USD. The USD/CAD is currently below both Weekly and Daily L4 support levels, indicating a strong downtrend. At this point, we can see that the price is trapped below the Chuvashov's fork (magenta trend lines) and a retest of POC zone 1.2385-1.2400 could see some fresh shorts. However short term rejections are possible also around 1.2365 (blue dotted line). Target is Weekly L5 - 1.2322 where we could see some profit taking and a bounce. USD/CAD long trades are possible if the fork is broken. The break of 1.2440 should be a potential long towards 1.2490 and 1.2544.

W H3 -1.2055 should give another upside boost to the pair.

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)

Follow @TarantulaFX on twitter for latest market updates

Sign up for Live Trading Webinars with Nenad Kerkez T

Connect with Nenad Kerkez T on Facebook for latest market update