FXtrades-gp

USDCAD: Is the PRICE Confirming the DOUBLE BOTTOM Pattern?

Long
FX:USDCAD   U.S. Dollar / Canadian Dollar
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🟢Forex Pair:
USD/CAD

Technical Analysis:
In the weekly chart, since the end of March 2020, the price has been following a strong downtrend, creating an interesting falling wedge pattern.
During the second week on January 2021, the price reached an important strong support zone , getting a first sign of rejection.

In the daily perspective, the price is still clearly moving with a strong downtrend, but a double rejection on the support level at about 1.26312 could be an interesting sing of market reversal.

In the h4 chart the price seems is creating a nice double bottom pattern, it reached and retested twice the same support level and now it's approaching to reach the next daily resistance level at about 1.27734.
The next price action around that level will be essential to confirm the pattern and eventually plan a long position.

🔴Conclusion: ✔️
Overall, in the daily and weekly perspective, the price is still in a clear downtrend, but strong rejections during the last sessions make me think that there is a good opportunity to catch a long position if the double bottom pattern is valid.
Before to open any long position, I'd highly suggest to wait the breakout of the resistance zone at 1.27748.

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What's your opinion? Share your idea writing a comment!

Trade Safe and Responsibly,
Gianni

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Comments

Amazing bias, do you think the price will reach your target?
+2 Reply
@abel11, I'll be waiting the price breaking the level 1.28000 before planning my long trade, but I'm very confident to see the price reaching the target :)
Reply
Nice chart
+1 Reply
FXtrades-gp koorosh552275
@koorosh552275, Hi and thanks so much for your comment! hopefully you'll find my work useful ! :)
Reply
yess stronger USD it is! but be careful here as the CAD may get stronger too pushing this pair down ;)
+1 Reply
FXtrades-gp TheSignalyst
@TheSignalyst, yeah you're totally right! I'd definitely wait a pullback on the resistance level to confirm the uptrend, but you know, market always changes! let's see :D
Reply
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