My bias on this publication last week (see link below for reference purposes) was rendered invalid as price broke down 1.33800 level given rise to a stronger CAD, which might result in a further decline as price retest 1.38000 level. The Loonie appears to begin the rally off of a backdrop of upside economic surprises and stronger commodity prices. Buyers couldn't continue the moment despite good figures resulting from NFP positive outlook on Friday as the price appears to stall at 1.33800 (Breakdown zone).
Tendency: Downtrend (Bearish) Structure: Supply & Demand | Channel Observation: i. Since Breakdown/Retest of 1.35000 level in mid-July 2020, the Bulls have found it immensely difficult to raise the bar resulting in a Channel to the downside. ii. As selling pressure increase from my Key level @ 1.35000, I shall be looking out for Sell confirmation in the coming week on this pair. Trading plan: SELL confirmation with a minimum potential profit of 300 pips. Risk/Reward: 1:3 Potential Duration: 2 to 6 days
NB: This speculation can be considered to make decisions on lower timeframes.
Watch this space for updates as price action is been monitored.
NirvanaForex Risk Disclaimer: Margin trading in the foreign exchange market (including foreign exchange trading, CFDs, etc.) has a high risk and is not suitable for all investors. The content of this speculation (including all data) is organized and published by me for the sole purpose of education and assistance in making independent investment decisions. All information herein is for your reference only and I take no responsibility. You are hereby advised to carefully consider your investment experience, financial situation, investment objective, risk tolerance level and consult your independent financial adviser as to the suitability of your situation prior to making any investment. I do not guarantee its accuracy and is not liable for any loss or damage which may result directly or indirectly from such content or the receipt of any instruction or notification therewith. Past performance is not necessarily indicative of future results.