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USD/CAD is signaling for recovery as it has formed a Double Bottom pattern on 1H chart. The pattern has 87% quality and 67% magnitude in the 429-bar period.
The pattern started when the pair started to depreciate from 1.0085; currently the pair is trading at 0.9922; pattern's support is at 0.9842/43; pattern's resistance is at 0.9949. Technical indicators on aggregate point at appreciation of the pair on 4H. The SWFX market sentiment is bullish as 70% of all open positions are long positions at the moment. In addition, 65% of all pending orders in the range of 100 pips from current market price are buy orders. Long traders could set the first target Fibonacci retracement (38.2% of 2nd to 21th of August move) at 0.9935. If the pair breaches this level, next targets could be at patterns' resistance at 0.9949, Fibonacci retracement (50%) at 0.9964 and daily pivot (R3) at 0.9981.
Short traders, who expect that the pair might rebound from pattern resistance and form a Rectangle pattern, could set their targets at daily pivot (PP) at 0.9911, 200 day SMA/daily pivot (S1)/Fibonacci retracement at 0.9905/00, daily pivots at 0.9881 (S2) and 0.9867 (S3) and pattern's support at 0.9843/42.
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