AzizKhanZamani

USDCAD Key Support|Bullish Divergence|Local Resistance|.618 Fib

Long
FX:USDCAD   U.S. Dollar / Canadian Dollar
Evening Traders,

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
- Volume below average

USDCAD’s immediate trend is bearish 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 bullish divergence . As both oscillators are diverging from price, this indicates buy momentum coming into the market.

Current volume 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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