USDCAD Short |Rising Wedge|Resistance Confluence|Daily Support

FX:USDCAD   U.S. Dollar / Canadian Dollar
Evening Traders,

Today’s Analysis – USDCAD – trading in a probable rising wedge pattern at local resistance, breaking down bearish will be a short opportunity.

Points to consider,
- Trend Bearish ( Consecutive lower highs)
- Daily support respected
- Local resistance confluence
- RSI wedge
- Volume tapering off

USDCAD’s overall trend is bearish 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 bearish

The RSI is also trading in a wedge pattern, breaking down bearish will confirm weakness in the market, the trend is likely to continue down.

Volume is tapering off and remaining below average. A volume spike is probable coinciding with a break of the wedge .

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 wedge must be backed with increasing bear volume for follow through.

What are your thoughts?

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