After the LONG awaited channel break, USDCAD has been dropping relentlessly, but now it is entering the reversal zone. There may be more movement down if the support levels are broken. For now, we should expect it to either go long short-term, a bull run for the long term, or more strong downwards movement after the reversal zone is broken (less likely). Support for upcoming Reversal: MACD: You can see a clear divergence forming in the MACD of the day timeframe. RSI: Getting ready to break the resistance line. Once the resistance line is broken we should expect a trend reversal. DMI: ADX line is getting near previous highs. We should expect it to start losing its steam and reverse around the 60-65 levels.
I like this setup, the reason i believe it will work is that, the down trend is unsustainable for one , we have a nice rejection zone, and lastly your DMI is sloping down. To even tip this trade more into your favor, USD is stronger than CAD on a daily level, i expect a nice huge rejection on a daily level proportion . I might take this one.
DaneelDouglas
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@DaneelDouglas, Did some more analysis, lines up well with my trading place, i will be going long along with you.
junghyun2006
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@DaneelDouglas, Glad to hear that we're on the same page. Good luck to the both of us!