By Admiral Markets
Technically speaking, the USD/CAD has been in a downtrend in 4h timeframe, but at this point it is looking a bit supported. The pair has formed two POC zones. The POC 1 1.2705-1.2720 ( W L3, 61.8, M L3, right shoulder) is the interim support zone and the bounce is expected as long as the price holds above the zone. In the case of a deeper retracement, the POC 2 is valid as the second POC zone 1.2625-50 ( W L4, M L4, 78.6, historical buyers) and as long as the pair is above 1.2520, there is a potential for upside targets. Targets are 1.2868, 1.2955 and 1.3060.
W L3 – Weekly Camarilla Pivot (Weekly Interim Support)
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W H3 – Weekly Camarilla Pivot (Weekly Interim Resistance)
W H4 – Weekly Camarilla Pivot (Strong Weekly Resistance)
M H4 – Monthly Camarilla Pivot (Very Strong Monthly Resistance)
M L3 – Monthly Camarilla Pivot (Monthly Support)
M L4 – Monthly H4 Camarilla (Very Strong Monthly Support)
POC – Point Of Confluence (The zone where we expect price to react aka entry zone)
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Article by Admiral Markets
Admiral Markets is a leading online provider, offering trading with Forex and CFDs on stocks, indices, precious metals and energy.