# USDCAD Reversal Formation (August 12, 2014)

Source: https://www.tradersway.com/resources/market-info/usdcad-reversal-formation-august-12-2014/
Language: en
Updated: 2014-08-12

USDCAD has formed a double top chart pattern on its 1-hour time frame, indicating that the uptrend is about to turn. Price has yet to break below the formation’s neckline near the 1.0900 major psychological support before confirming the selloff.



![USDCAD Reversal Formation (August 12, 2014)]



Stochastic is almost in the overbought zone already, which means that bears could jump in sooner or later. A break below the 1.0900 mark could lead to a drop of nearly a hundred pips, which is the same height as the chart pattern. Stronger selling pressure could take the pair down to the 1.0700 levels.



Shorting below 1.0900 with a tight stop and a target at 1.0800 could yield a good return on risk for a short-term trade.



*By Kate Curtis from Trader’s Way.*