USD/CAD Bearish trend would continue?
USD/CAD is clearly in the bearish trend last week. The issue here is that how many times the price will retest this level of support? Double bottom or even triple? Or it could break up and continue to fill up the gap down?
1. Well-respected the bearish trendy line and EMA 20/25, lower high and lower low?
2. Gap down is nearly filled up?
3. This level is critical for demand side, therefore it should be more than two retested price actions at this support level. Therefore, it would not be surprised to see that price will move between the EMA20/25 (bearish trendy line) and its current support level of 1.3488 - 1.3422.
4. MACD 4h is about to revert back to the bearish trend, red zone.
5. USD/CAD should retest the EMA 200 Weekly (1.29566 - 1.32888) on my viewpoint, because this zone is a ''highly demanded'' area and it have not tested this level yet since Dec 2019. Remember that during 2017 - 2019, price action of this pair is well respected this level of support and it would be considered as a fair price or fair value to maintain the balance on this pair.
Bearish Bias: Unless price could break the bearish trendy line and move up Higher higher and Lower higher above the EMA 20/25, there will be no BUY or otherwise Bullish confirmation. It could break the support towards lower level of support (around EMA 200 weekly zone 1.3088-1.3222).
Cheers and thank you for any supporting comments.
1. Well-respected the bearish trendy line and EMA 20/25, lower high and lower low?
2. Gap down is nearly filled up?
3. This level is critical for demand side, therefore it should be more than two retested price actions at this support level. Therefore, it would not be surprised to see that price will move between the EMA20/25 (bearish trendy line) and its current support level of 1.3488 - 1.3422.
4. MACD 4h is about to revert back to the bearish trend, red zone.
5. USD/CAD should retest the EMA 200 Weekly (1.29566 - 1.32888) on my viewpoint, because this zone is a ''highly demanded'' area and it have not tested this level yet since Dec 2019. Remember that during 2017 - 2019, price action of this pair is well respected this level of support and it would be considered as a fair price or fair value to maintain the balance on this pair.
Bearish Bias: Unless price could break the bearish trendy line and move up Higher higher and Lower higher above the EMA 20/25, there will be no BUY or otherwise Bullish confirmation. It could break the support towards lower level of support (around EMA 200 weekly zone 1.3088-1.3222).
Cheers and thank you for any supporting comments.
Trade closed: target reached:
Bearish bias: Target is reached after two days, 10 Jun 2020. There were a strong rejection for a downside. As I mentioned, in order to validate the reversal trend, we should be patience to wait for a higher high and lower low + a strong green candle on the upside.