Today’s Analysis – USDCAD – trading in a probable pattern at local resistance, breaking down will be a short opportunity.
Points to consider,
- Trend ( Consecutive lower highs)
- Daily support respected
- Local resistance confluence
- tapering off
USDCAD’s overall trend is with consecutive lower highs; local resistance is the next trade location. This area has multiple technical confluences, the .618 Fibonacci and market structure allows for a valid short with defined risk.
Daily support is the trend target if price action was to break
The is also trading in a pattern, breaking down will confirm weakness in the market, the trend is likely to continue down.
is tapering off and remaining below average. A spike is probable coinciding with a break of the .
Overall, in my opinion, USDCAD is likely to respect local resistance. A short trade is valid into daily support with defined risk. Breaking down from the must be backed with increasing bear for follow through.
What are your thoughts?
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“Trade the market in front of you, not the one you want!” – Scott Redler