Bearish Bat Pattern on USDCAD (60 Min) + Descending Triangle

FX:USDCAD   U.S. Dollar / Canadian Dollar
218 0 1
Hello Everyone,

I have identified a Bearish Bat Pattern in the making. I was taking a look at a 30 minute Bullish Bat Pattern that JasperForex had posted (great idea might I add). I decided to look at a higher time frame to see what potential harmonic patterns can be found.

I identified this Bearish Bat Pattern along with a descending triangle . Here is what makes me think we can have a break in the descending triangle .

The bat pattern has a 0.886 completion that matches structure (green dashed line) and there is a Fib ratio confluence (1.414 AB and 1.618 BC             ). This makes my PRZ (the purple red rectangle ) where I believe the pair will then reverse.

The targets I set are based on the 0.382 and 0.618 retracements from target to C point. The first target is not set to the 0.382 perfectly because of structure (blue dashed line). This was a level for which the pair did touch and reverse. The second target is actually quite wonderful. It is based on the 0.618 retracement and another structural level (orange dashed line). Coincidentally (didn't know this until I drew in the trendlines ), it would imply a retest of the trendline resistance (then support) of the descending triangle .

Basically, we could see the pair break the descending triangle , reach pattern completion, retrace down to retest the trendline resistance (then support) and continue to the descending triangle pattern target (height of the descending triangle ).

Trade wisely, Trade responsibly.
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