USDCAD | Perspective for the new week | Follow-up
CAD appears to have gained some ground after a strong employment report last week which brings me to re-visit my existing stance on this pair.
The price moved over 160pips in our direction since my last publication before meeting selling pressure @ CA$1.265000 followed by rejection at this same area during last week trading session to make a complete Reversal pattern (Double Top) at exactly the peak of the Channel Trendline (see link below for reference purposes). This feat completely emphasizes that price action is about respecting the Descending Channel (See chart below) one more time as I look forward to a breakdown/Retest of Neckline which is also my Key level @ CA$1.25300 for confirmation in the coming week(s)!
Tendency: Downtrend ( Bearish )
Structure: Breakdown | Supply & Demand | Reversal Pattern (Double Top)
Observation: i. Since the last quarter of last year, the price has been fluctuating between consistent highs and lows within a Channel in a downward trend.
ii. Double Top: The appearance of an extremely bearish technical reversal pattern that formed after price touched a high @ around CA$1.26500/1.26350 area two consecutive times with a moderate decline between the two highs calls for a Bearish bias in the coming week(s).
iii. As at the time of this analysis, price is hovering in a Demand area (CA$1.25300 - neckline) that might thrust price up hereby making us revert to my previous bias ( see link below).
iv. Opening a sell position on this pair can only be confirmed below Key level. Waiting for a significant Breakdown/retest of Neckline @ CA$1.25300 (Demand zone) is the only means of confirming that the Bears have come to stay at this juncture... trade consciously :)!
Trading plan: SELL confirmation with a minimum potential profit of 250 pips.
Risk/Reward: 1:5
Potential Duration: 5 to 10days
NB: This speculation might be considered to make individual decisions on the lower timeframe.
Watch this space for updates as price action is been monitored.
Risk Disclaimer:
Margin trading in the foreign exchange market (including foreign exchange trading, CFDs, etc.) has a high risk and is not suitable for all investors. The content of this speculation (including all data) is organized and published by me for the sole purpose of education and assistance in making independent investment decisions. All information herein is for your reference only and I take no responsibility.
You are hereby advised to carefully consider your investment experience, financial situation, investment objective, risk tolerance level, and consult your independent financial adviser as to the suitability of your situation prior to making any investment.
I do not guarantee its accuracy and is not liable for any loss or damage which may result directly or indirectly from such content or the receipt of any instruction or notification therewith.
Past performance is not necessarily indicative of future results.
The price moved over 160pips in our direction since my last publication before meeting selling pressure @ CA$1.265000 followed by rejection at this same area during last week trading session to make a complete Reversal pattern (Double Top) at exactly the peak of the Channel Trendline (see link below for reference purposes). This feat completely emphasizes that price action is about respecting the Descending Channel (See chart below) one more time as I look forward to a breakdown/Retest of Neckline which is also my Key level @ CA$1.25300 for confirmation in the coming week(s)!
Tendency: Downtrend ( Bearish )
Structure: Breakdown | Supply & Demand | Reversal Pattern (Double Top)
Observation: i. Since the last quarter of last year, the price has been fluctuating between consistent highs and lows within a Channel in a downward trend.
ii. Double Top: The appearance of an extremely bearish technical reversal pattern that formed after price touched a high @ around CA$1.26500/1.26350 area two consecutive times with a moderate decline between the two highs calls for a Bearish bias in the coming week(s).
iii. As at the time of this analysis, price is hovering in a Demand area (CA$1.25300 - neckline) that might thrust price up hereby making us revert to my previous bias ( see link below).
iv. Opening a sell position on this pair can only be confirmed below Key level. Waiting for a significant Breakdown/retest of Neckline @ CA$1.25300 (Demand zone) is the only means of confirming that the Bears have come to stay at this juncture... trade consciously :)!
Trading plan: SELL confirmation with a minimum potential profit of 250 pips.
Risk/Reward: 1:5
Potential Duration: 5 to 10days
NB: This speculation might be considered to make individual decisions on the lower timeframe.
Watch this space for updates as price action is been monitored.
Risk Disclaimer:
Margin trading in the foreign exchange market (including foreign exchange trading, CFDs, etc.) has a high risk and is not suitable for all investors. The content of this speculation (including all data) is organized and published by me for the sole purpose of education and assistance in making independent investment decisions. All information herein is for your reference only and I take no responsibility.
You are hereby advised to carefully consider your investment experience, financial situation, investment objective, risk tolerance level, and consult your independent financial adviser as to the suitability of your situation prior to making any investment.
I do not guarantee its accuracy and is not liable for any loss or damage which may result directly or indirectly from such content or the receipt of any instruction or notification therewith.
Past performance is not necessarily indicative of future results.
Comment:
Perspective from my daily chart
Trade smart. Trade consciously
