The USD/CAD pair on the M30 timeframe exhibits a potential selling opportunity due to a well-defined bearish channel pattern. This pattern suggests ongoing selling pressure and a higher likelihood of further declines in the coming minutes or hours.
Key Points:
Bearish Channel: As visualized on the M30 chart, the price has been confined within a descending channel characterized by two falling lines: a resistance line and a support line. This ongoing downtrend signals continued selling pressure.
Sell Entry: Consider entering a short position around the current price of 1.3460, positioned close to the channel resistance. This offers an entry point near a potential reversal zone.
Target Levels: Initial bearish targets lie at the support levels of 1.3414 and 1.3396, marking previous support zones within the channel.
Stop-Loss: To manage risk, place a stop-loss order above the channel resistance line at 1.3485. This helps limit potential losses if the trend unexpectedly breaks upwards.
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News and Events:
Stronger Crude Oil Prices: Oil prices remain elevated, supporting the Canadian Dollar as Canada is a major oil exporter. This could put downward pressure on USD/CAD.
Hawkish Bank of Canada (BoC): Recent hawkish signals from the BoC about potentially faster interest rate hikes could strengthen the Canadian Dollar compared to the US Dollar.