USDCAD WEEKLY TIMEFRAME ANALYSIS & BACKTESTING - TP1 1.35000
Good afternoon from the UK. Being a Sunday I like to do a Top down analysis looking at higher timeframes at first. Now the first week in April we have had a Hammer form after a bearish weekly closure previously. The hammer has used my weekly key level as a level of support closing above it with price rejecting the region below with a long tailed wick.
As you can see with some longterm trend lines and inner trendiness placed we are still within a long term uptrend. We are creating higher swing lows showing upwards momentum hasn't stopped. Now looking at the moving averages we are looking for that MA cross to the upside with the pair having the opportunity to fill price to the upside. Now for the past 5 weeks the pair has not closed above 1.3450 and the only swing high recently above that was in December hitting a monthly key level at 1.36600.
Now as a day trader you will want to find DAILY key levels in-between these price action zones. This is where I had to back test and find key levels on the weekly timeframe. They may be more visible on a lower timeframe but there are some key physoclogical levels that can be found on the weekly but we were to drop down a timeframe. Going back to the 05/06/2017 we have had candle closures and wick spikes in and around 1.3500 - 1.35300 shown by my green horizontal rays. These are great level for the pair to revisit, slowdown in momentum before seeing more highs or perhaps another swing low.
As you can see with some longterm trend lines and inner trendiness placed we are still within a long term uptrend. We are creating higher swing lows showing upwards momentum hasn't stopped. Now looking at the moving averages we are looking for that MA cross to the upside with the pair having the opportunity to fill price to the upside. Now for the past 5 weeks the pair has not closed above 1.3450 and the only swing high recently above that was in December hitting a monthly key level at 1.36600.
Now as a day trader you will want to find DAILY key levels in-between these price action zones. This is where I had to back test and find key levels on the weekly timeframe. They may be more visible on a lower timeframe but there are some key physoclogical levels that can be found on the weekly but we were to drop down a timeframe. Going back to the 05/06/2017 we have had candle closures and wick spikes in and around 1.3500 - 1.35300 shown by my green horizontal rays. These are great level for the pair to revisit, slowdown in momentum before seeing more highs or perhaps another swing low.