USDCAD further BEARISH continuation

FX_IDC:USDCAD   U.S. Dollar / Canadian Dollar
Looking at the monthly timeframe, price is currently at a historical resistance/support zone. In 2004 this level was acting as support, and once broken, was retested as resistance in 2005 and 2009.

DAILY- This pair was stuck in a range for approximately four months since the start of 2015. Price broke through this range in the form of an ABCD Fibonacci play to induce a potential reversal to the downside. As a result a potential mid/long-term target will be point D, at the -27% fib level, ~1.1724.

For further confluence, the Moving Averages in use are converging, thus indicating a probable crossover to the downside.

H4 - There has been a break and retest of the counter trendline , which acted as a trendline for price from point B to C. What is occurring now is the continuation of the break of the counter trendline .

H2- This two hour timeframe shows further confluence of the sellers taking control, because price has broken through the 200MA.

Currently price is sitting on the -27% fib which has been drawn on the 2 hour timeframe. The next potential move could be a retest of the previous low of 1.2365, which is the 0% fib level, also confluent with a retest of the 200MA as well as a third touch of the bearish trendline . This price level could be a good level to go short if price action does seem appropriate. Remember, the market can change direction in a flash, therefore it is best to see what price does in order to confirm the bias, rather than second guessing.

The next short-term target is the -61.8% fib (H2), which is also confluent with previous support and resistance

On the other hand, in the short term if price does break counter trendline (H2), then it may be better to wait for further confirmation of a direction before entering short or long.

Home Stock Screener Forex Screener Crypto Screener Economic Calendar Shows How It Works Chart Features Pricing House Rules Moderators Website & Broker Solutions Widgets Charting Solutions Lightweight Charting Library Help Center Refer a friend Feature Request Blog & News FAQ Wiki Twitter
Profile Profile Settings Account and Billing Refer a friend My Support Tickets Help Center Ideas Published Followers Following Private Messages Chat Sign Out