USDCAD Impulse Sell|Structural Support|.618 Fib|Liquidity Grab

Evening Traders,

Today’s Analysis, - USDCAD – impulse sell into structural support where a relief rally is probable.

Points to consider,
- Trend oversold bounce
- Structural support (trade location)
- Local resistance (.618 Fibonacci Confluence )
- RSI swing low failure
- Market structure needs to hold

USDCAD’s impulse sell hit oversold conditions causing the market to bounce at structural support. This is a valid trade location, the impulse bull candle back into support signals a probable liquidity grab.

Local resistance is in confluence with the .618 Fibonacci, a likely area for a bearish retest, price context will be important here.

The RSI has a valid swing low failure, must hold above extreme for it to remain significant. Price breaking below structural support will coincide with the RSI back into oversold conditions.

Overall, in my opinion, USDCAD needs to hold structural support for follow through. A long trade is valid with defined risk – the immediate target – local resistance.

What are your thoughts?

Thank you for following my work!

And remember,

“If you can learn to create a state of mind that is not affected by the market’s behavior, the struggle will cease to exist.” – Mark Douglas