USDCAD - Bulls or Bears? Good Reasons for both
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.
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.
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
