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USDCAD - Bulls or Bears? Good Reasons for both

FX:USDCAD   U.S. Dollar/Canadian Dollar
104 0 6
11 months ago
Greetings Fellow Traders,

As previously posted USDCAD             had a good short opportunity when the bullish strength on the move from 1.34 showed definite signs of weakness...however that sell off was rather short lived which is starting to paint a different picture for what's to come.

If you're a strong supporter of USDCAD             bulls, you should look for a confirmed trend line break near 1.3950...however be careful of the 1.40000 level, I would like to see both of these break to really add additional strength. The current structure here can be taken as a bullish flag potential.

If you're more of the Bearish persuasion, unless you're already short from the 1.3940 level there is not a really good reason to enter right now...however, a rejection off of 1.40000 would make for a very strong double top. The next easily identified bearish trade is actually a long way off, down at 1.34 area, indicated on the chart.

I will remain neutral for this analysis - but my long term bias is definitely with the bears at this point in time. Short term bulls definitely have the advantage with a potential bullish flag, but the confirmation break is still needed.

If you're not in any trade on USDCAD             right now, I would remain on the side lines and wait for additional price action to create better entries. Waiting is the hardest part of trading.

Feel free to comment/like/follow.
11 months ago
Comment: Hope you all were able to make some good pips off of this structure - stayed true to the bulls we never saw the confirmation for the bears, just the anticipated bounce off of 1.40
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