USDCAD Forecast Analysis for July 11, 12, 13, 14, 15, 2016
The price is consolidating inside the post-Brexit candle and a large symmetrical triangle. Which way the price will breakout we can’t know ahead of it and at the moment, USDCAD is trading right at the upper end of the triangle and this is a good chance to sell with a tight stop targeting the lower end of the triangle at around 1.2850.
If however, the pair breaks the triangle to the upside, then an interesting thing to consider is this bearish harmonic Gartley pattern (shown with the blue triangles on the chart), with an ending point at 1.3850. It’s still early to talk about any possible reversals because this level is still far away, but if the market reaches it, it will be resistance and a strong selling point. Usually, when the price forms harmonic patterns, it does it slowly, so if the market decides to go to 1.3850 it’s likely to do it in a somewhat choppy, crawling fashion.