The USDCAD has formed a bearish engulfing bar (BEEB) on the daily chart. This BEEB is formed up at a swing high and rejecting a solid resistance level.
The major problem for this setup is Very Big Round Number (VBRN) of 1.000 that sits just below this BEEB. If price can solidly move through the VBRN we could see a move lower into the near term support level.
If price rejects the VBRN like it has done in the past, a move higher would need to break through the resistance that it couldn’t break at the last attempt.
USDCAD DAILY CHART -14 FEB 2013
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