CADUSD, Approaching Main Level, Possible Reversal In Sight!

Hello Traders Investors And Community, welcome to this analysis about recent events, the current price-formation and what we can expect the next times from CADUSD, there developed some important and worthful signs which I discovered which have an increasingly strong bearish edge and can play a leading role in the outcome and determination of CADUSDs price-action which we need to consider for a possible entry in the market with the proper risk-preferences. To have a good overview of the ongoing events we are looking at the locally 4-hour timeframe.

As you can see in my chart CADUSD moved in a steady uptrend which is weakening right now because the volatility gets lower and we are approaching the horizontal resistance which we have at 0.745, there was also a gap which filled and after such a gap-fill we normally get a bounce back in the other direction, so there are coming many factors together which making the current zone a significant resistance which will prove fully confirmed when we break the speed-resistance-lines you can see marked in blue within my chart to the downside, the trend in which we are trading right now is weakening and a break below the first trendline will signal a reversal to the downside.

Overall we can contemplate that together with the given technical factors and the RSI which is also overbought at the moment we are trading in a decent ongoing bearish environment minimum on the short-time-scale. Therefore we can expect after CADUSD has tested as second time the resistance above to turn to the downside when this scenario plays out properly we have the short-term-support at 0.7345, it is withing the possible spectrum that when we touch this support and stabilize there we can form a reversal in this area, in this case, it is important to fulfill good bullish volatility in this area for a full reversal in the bullish direction.

When the short-term-support does not hold the downtrend will go on until CADUSD reaches the middle-term-support which you can see in marked with orange in my chart. There we have also the third speed-support-line which needs to behold to establish a further bullish trend, when we break this last support line to the downside this will cause heavy bearish pressure. At the moment we should not fall for the illogical speculative trap that the bullish trend just goes on forever because the warning signs for contemplated before for the reversal are too strong to pass from hand.

In this manner, thank you for watching the analysis, support for more market insight and all the best!
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Information provided is only educational and should not be used to take action in the markets.

Comment:

ANALYSIS UPDATE: CADUSD pulled back bearishly in the range to reach the bearish target zones, especially formed by the third ascending trend line.

CADUSD after bouncing into the third ascending trend line formed a stabilization setup from where it continued with further breakouts.