USD/CAD ABCD Pattern Marks the Support
The rate cut wasn’t on the table yesterday as economic data in Canada has improved. Slightly hawkish stance of BOC’s chief Poloc reflected on the USD/CAD, sending the dollar down straight to W L5 support. At this point, we see an ABCD pattern at D L3 support, so the break of 1.3250 could spur a correction towards 1.3300 where we see a bearish POC (ATR top, EMA89, bearish order block, W L4) within 1.3300-1.3320. Rejections from POC target 1.3220 and 1.3190.
Keep in mind that if 1.3250 is not broken to the upside, we might see a straight drop below 1.3218 for 1.3190 and 1.3145 final D L5 target.
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D L3 - Daily Camarilla Pivot (Daily Interim Support)
D H3 - Daily Camarilla Pivot (Daily Interim Resistance)
D H4 - Daily Camarilla Pivot (Strong Daily Resistance)
D L4 - Daily Camarilla Pivot (Very Strong Daily Support)
D L5 - Daily Camarilla Pivot (Strongest Daily Support)
W L5 - Weekly H4 Camarilla (Strongest Weekly Resistance)
POC - Point Of Confluence (The zone where we expect price to react aka entry zone)