USDCAD 30min Analysis December 21st, 2020
Price has broken out of our falling wedge with strong bullish momentum. Currently the 200ma on the 4h timeframe is acting as resistance.
Trade scenario 1: Bearish - We can stay on a lower timeframe and wait for a LH to form around our weekly level at 1.2906. We would want to see a bearish engulfing on the 30min at our weekly level and then look short. Targeting our previous key level around 1.282.
Trade scenario 2: Bullish - If we are to look long we will need to see a clear HL form. We want to see price retrace back to our key level of resistance around 1.282 and flip as support. We will then look for bullish engulfing/variations to enter on.
Trade scenario 1: Bearish - We can stay on a lower timeframe and wait for a LH to form around our weekly level at 1.2906. We would want to see a bearish engulfing on the 30min at our weekly level and then look short. Targeting our previous key level around 1.282.
Trade scenario 2: Bullish - If we are to look long we will need to see a clear HL form. We want to see price retrace back to our key level of resistance around 1.282 and flip as support. We will then look for bullish engulfing/variations to enter on.