USDCAD Testing the Previous Swing Peak
The price action of the USDCAD pair is currently nearing the last swing peak at 1.28000 (the Distribution area in red). If it manages to penetrate above it, the price would then likely head towards the 1.272 Fibonacci extension level at 1.29054.
The dollar strengthening in the short term is owing to investors and traders' expectations of FED tapering. Notice that the current uptrend commenced following a breakout above the Pennant pattern.
Bears can look for an opportunity to sell around 1.29054 on the expectation for a minor correction. The price action could then fall to the 23.6 per cent Fibonacci retracement level at 1.26191.
The dollar strengthening in the short term is owing to investors and traders' expectations of FED tapering. Notice that the current uptrend commenced following a breakout above the Pennant pattern.
Bears can look for an opportunity to sell around 1.29054 on the expectation for a minor correction. The price action could then fall to the 23.6 per cent Fibonacci retracement level at 1.26191.
