The USDCAD has fired off a pin bar reversal on the weekly price action chart that is rejecting the near term support level. This pin bar is down at a swing low and in-line with the recent weekly up-trend, with price making higher highs and higher lows on the weekly chart in recent times.
If price can break the high of this pin bar and gain momentum to push higher, the next major resistance for this market comes in around 1.0420. Price breaking through the high of the pin bar is going to be key. If price cannot break through the pin bar high, it will be an indication that the bulls are not strong enough to regain control. If price fails and moves back lower, the next support for price comes in around 1.0160.
I recently wrote an article on the major points that traders struggle with on the pin bar reversal. Whilst the pin bar is quite a popular price action signal and can be a super powerful and reliable signal when used correctly, it is too often used in the wrong spots on the charts and not how it is supposed to be used. If you trade the pin bar I highly recommend you read this article here: Where traders go wrong with the pin bar reversal.
USDCAD Weekly Chart