has been creating lower lows and lower highs the past week and has offered several great sell opportunities, one of which I had posted a previous idea regarding (See related ideas below). Going into this week, USDCAD
has formed a corrective move back into a previous support level
, now turned resistance (Roughly 1.2925). This is an ideal area to form another lower high in anticipation to resume the downtrend and excellent confluence area to get in on this bearish
momentum. It also lines up with the 20 EMA
for additional synergy
. If we correct a little higher, the next excellent opportunity to jump on is the 1.2972 handle.
Conservative traders can target the recent low at 1.286 as their initial target while more aggressive traders can look to ride this potentially all the way to the recent 1.27 double bottom
or the longer term swing low just under 1.25.
Always keep an eye on price action for hints of reversals/exit areas.
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