The current USD/CAD chart is a great example of how confluence works in trading.
The 2-wave uptrend has been slowing >> RSI divergence
Price made a triple top
Above current price we see a resistance level and the 138 Fib
We are missing:
Strong bearish momentum break
The break of the moving average to the downside
Don't short just yet, but keep an eye and wait for the confirmed break lower.
Comments
regan.homavazir
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Just to point out, in Fibonacci Retracements there is no 76.40%, its 78.60%. Also the retracement taken in the chart is of the rise and not the fall. The retracement placed should actually be inverted as we are trying to understand the depth of the correction (of the rise from 1.24 to 1.31).