Looking at the 2D timeframe chart of USD/CAD, we may observe that a descending triangle pattern has been formed and that the price has successfully broken the upper boundary (the descending trendline) of it. Using the Fibonacci retracement tool, we might identify that the 38.2% key Fibonacci level nicely lines up with a crucial area of previous resistance that now acts as support that is identified on the graph.
We are expecting for the price to continue its short-term bearish movements and reach the price level highlighted on the graphic. From there, due to the fact that our bias remains bullish, we will possibly look into executing long positions and riding the next up-trending wave.
not happening , CAD is extremely weak especially after the data from last Friday it's been on a downtrend
kareni07
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@ibrar550 You can look at chart 6C1i which shows the Canadian dollar price. It is in the consolidation phase and can experience temporary growth, so this analysis is correct!
ibrar550
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@kareni07 I'm looking at it from fundamentals point, no positive fundamentals from CAD for over a week
kareni07
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@ibrar550 Usually, in the accumulation phase, bad news is spread about the desired currency! But because it is risky, it is better not to enter into such a position !