USD/CAD Transitioning at 1.1500 Ceiling

There are always a number of ceilings (resistance levels) to watch on any chart and time frame. The trick to trading is knowing which one the market will react to. That means treating each resistance level as a potential stall or reversal. Forecast Regions are one way to identify resistance in an uptrend or rally as are psychological levels like "00". The USD/CAD has both working for it on the 60 minute chart which shows the follow-through from a Continuation Pennant.





With the Forecast Region (resistance) plotting between 1.1400 and 1.1490 there is a wide area to consider. So, narrowing it down to the most likely price levels can be helpful and is easily done by considering the
"00" and also "50" levels. In this case, that would be 1.1400 and 1.1450. In fact, even considering the 1.1500 level which is just ten pips above the top of the Forecast Region would be wise.

So, if there is a ceiling in this area, there is a chance that selling pressure could begin to not only strengthen resistance, but also to push prices lower. Watch the 240 minute chart's Reversal Falling Wedge which is turning down towards uptrend (blue) line support. This could trigger a breakdown below the 1.1400 level.