USD/CAD is seeing major resistance at the 1.3135 - 1.3140 area. This is a very strong graphical resistance and also a Fibonacci projection level. It also corresponds really well with the resistance our Stochastic is facing from the 83% to 95% levels. Stochastic is also starting to show bearish divergence vs price strengthening our conviction about a drop from here. Our goal then is to play a strong reversal from here to the first Fibonacci retracement level + big figure + graphical support level of 1.3000.
Trading recommendations
Sell now and at the 1.3135-1.3140 area
Stop loss at 1.3225
Take profit at 1.3000 (Fibonacci retracement + big figure + graphical support)
