Let's analyze the currency pair USD/CAD using technical analysis. The main focus will be on the levels of weekly pivot support and resistance, the basement indicator, and the indicator forming 1-2-3 patterns. Let's concentrate on the chart.
On April 3, the Vertex 3 indicator, during the peak of the American trading session, signaled that the currency pair was overbought, leading to a sharp decline in quotes. The confirmation of the indicator signal occurred on April 7 during the second half of the Asian trading session. The 200 and 50 period moving averages show a strong downtrend, in line with signals from other indicators. Sellers managed to form a 1-2-3 pattern, indicating their intention to reverse the quotes downwards. Additionally, sellers were able to confirm the 1-2-3 pattern by breaking through the 1.39008 level, demonstrating their strength. In this situation, I will wait for a pullback to the weekly pivot resistance level at 1.39251, and once it is reached, I will open a sell position.
