The USDCAD price has rejected a technical level, could this see price reverse in the short term?
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The price of USDCAD has been rallying ever since the USD strengthened for fundamental reasons. The Federal Reserve has hiked rates aggressively and looks to continue on this path with rates heading towards 3%. The strength meter shows the USD is strong as well as the CAD which could keep this market in a trading range.
The weekly chart shows the price trading between two diagonal lines in a diagonal range, and has done so for some time. The price has now come back to the top of this range and we have seen a minor rejection of the level. If the price does reject here we could see a move back to the lows of the range. The 4hr chart shows the price forming a rejection, if we see a second retest of the highs with price forming a double top pattern we could look for an opportunity for a short trading idea.
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