Happy Profitable Investing :)
1. The correction of previous higher degree downward impulse reversed from 78.6% level
2. Bearish divergence on monthly time frame confirms the longer term downtrend is about to start
3. Recently the first downward impulse broke the green dotted line on RSI showing the power of bears
4. The price action trapped bulls by giving a false breakout on corrective price channel and price reversed back in the channel during same month
I know its too early to predict a top but last pattern + Bearish divergence on RSI + the pin bar on hourly time frame together make a good combo BUT its not enough of a sign of entering the market for shorting USDCAD. Only confirming price action is sign of jumping in. Please keep reviewing my charts plus your strategy/knowledge to confirm the top.
Finally it looks like USDCAD has finished the higher degree correction and now we need to keep our eyes open to find the best entry to go short. It looks to me that we have got 5 minute waves down and the trend channel is also broken which implies that we will get 3 minute waves up to retest the channel - that would be our entry point given that it looks like correction but not impulse. So stay a little bit more patient and we will get what we deserve.
Happy trading :)
As we can see the USDCAD has five waves down and three up but these three up are bit sharp as opposed to be slow and sloppy in corrective fashion. We can still take a small risk and target big profits. Lets see how price action unfolds. Always use tight StopLoss and never change it thinking that price may move in your direction someday.
Since the political situation in USA these days may provide high volatility so Risk is all yours. I can only show you what I see and wish you great luck!!
Good luck :)
Good luck !!