USDCAD Short |Rising Wedge|Resistance Confluence|Daily Support
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?
Thank you for following my work !
And remember,
“Trade the market in front of you, not the one you want!” – Scott Redler
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?
Thank you for following my work !
And remember,
“Trade the market in front of you, not the one you want!” – Scott Redler