USD/CAD Trade Idea

• Harmonic pattern formed – Bearish Gartley Pattern.
   
• Potential Reversal Zone (PRZ)- 1.3280.
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• Loonie has recovered sharply from the low of 1.30683 on account of rate divergence between U.S and Canada but rising oil prices weigh on the Canadian dollar.
• The greenback strengthened after the release of U.S ISM manufacturing index data. The index rose to 51.5 last month compared to August’s reading of 49.4.
• Short term trend is still bearish as long as resistance 1.3280 holds.
• On the higher side, any break above 1.3280 confirms the minor bull trend , a jump till 1.3300/1.3360 is possible.
   
• Loonie’s major support is around 1.31500 and any break below targets 1.3100/1.3068 (55- day EMA).

It is good to sell on rallies around 1.3230 with SL around 1.3280 for the TP of 1.3150/1.3100

Resistance 

R1-1.3280

 R2-1.330

 R3-1.3360

Support    

S1-1.3150

S2-1.3100

S3-1.3065