USD/CAD Inverted Head And Shoulders In 4 Hour Timeframe

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Technically speaking, the USD/CAD has been in a downtrend in a 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)

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 the price to react aka entry zone).