USD/CAD Showing Bearish Signs - Potential for Downtrend
We're observing the USD/CAD pair with a keen eye on bearish patterns. The chart indicates a retracement with the Fibonacci levels highlighting a zone between 0.618 and 0.786. This is a critical observation because the pair has recently taken a dip from the 1.3612 level, forming what's known as a 'double top'.
The fall that followed this pattern seems quite significant, suggesting a strong bearish movement. It's also worth noting that retracements like this often lead to a continuation of the trend, which could mean more downward momentum might be on the horizon.
For those considering a short position, the logical placement for a stop loss would be just above the 1.35920 mark. Setting a stop loss here is a precaution in case the price unexpectedly moves upward, breaching this level.
The fall that followed this pattern seems quite significant, suggesting a strong bearish movement. It's also worth noting that retracements like this often lead to a continuation of the trend, which could mean more downward momentum might be on the horizon.
For those considering a short position, the logical placement for a stop loss would be just above the 1.35920 mark. Setting a stop loss here is a precaution in case the price unexpectedly moves upward, breaching this level.
Trade closed: target reached:
Target Reached