Today’s Analysis – USDCAD – strong sell off leading the market to oversold conditions, a bounce is probable into local resistance.
Points to consider,
- Impulse sell relief rally
- Structural support respected
- Local resistance (immediate target)
- Oscillators diverging
- below average
USDCAD’s immediate trend is with an impulse sell into a key level, structural support that is holding true.
A relief rally is probable into local resistance – backed by a valid double . As both oscillators are diverging from price, this indicates buy momentum coming into the market.
Current node is below average, an influx is highly probable upon a back test of the .618 Fibonacci. Follow through will be needed to reach local resistance target.
Overall, in my opinion, USDCAD is a valid long with defined risk. The market is due for a relief rally; price action is to be used upon discretion/ management of the trade.
What are your thoughts?
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