The price of USDCAD is now in the stalling zone in confluence with a historical order block. The failure to break the stalling zone may lead to further bearish momentum.
The POC Zone is 1.3363-73 [8/8, +1/8 area] in confluence with the stalling zone and historical order block. A divergence can also be seen in the short term and this might be the catalyst that leads to further selling.
An entry confirmation would be a decisive close that breaks the red trend line. We are looking for key reversal bars like Marubozu, Engulfing, Hanging Man for further confluence and confirmation. Targets are 1.3320 [W L3 // 2/8 // D L5] with an extended target to 1.3290 [W L5 // -2/8 // Previous Swing Low] if our confirmation is strong enough to lead to decisive selling.
Should price manage to close above 1.3385 [W H3 // D H4 // +2/8], we might see more bullish bias. In that case, price will be aiming for 1.3340 D H5, and 1.3410 W H4, with an extended target to hit 1.3460 W H5.
This analysis has been done with the CAMMACD.MTF template.
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Davin Wu aka AmbitionFX