The USD/CAD currency pair is currently experiencing a weekly consolidation phase, indicating a period of indecision and equilibrium between buyers and sellers. Price action has retraced to the 61.8% Fibonacci retracement level, a significant zone where the pair is encountering resistance and struggling to break out.
Traders may consider monitoring for signs of bearish momentum to potentially take control, leading to a re-test of the weekly support level. This suggests that sellers may regain dominance, pushing the pair lower from its current range.
Given the market dynamics, it's important for traders to exercise caution and manage risk effectively. Only risking 1-2% of capital on any single trade is advisable to mitigate potential losses. Additionally, employing proper risk management techniques such as setting stop-loss orders is essential in navigating the inherent volatility of the forex market.
Disclaimer: Trading forex involves substantial risk and may not be suitable for all investors. The information provided is for educational and informational purposes only and should not be construed as financial advice. Traders should conduct their own research and consult with a qualified financial advisor before making any investment decisions. Risk management is paramount, and traders should only trade with capital they can afford to lose
Traders may consider monitoring for signs of bearish momentum to potentially take control, leading to a re-test of the weekly support level. This suggests that sellers may regain dominance, pushing the pair lower from its current range.
Given the market dynamics, it's important for traders to exercise caution and manage risk effectively. Only risking 1-2% of capital on any single trade is advisable to mitigate potential losses. Additionally, employing proper risk management techniques such as setting stop-loss orders is essential in navigating the inherent volatility of the forex market.
Disclaimer: Trading forex involves substantial risk and may not be suitable for all investors. The information provided is for educational and informational purposes only and should not be construed as financial advice. Traders should conduct their own research and consult with a qualified financial advisor before making any investment decisions. Risk management is paramount, and traders should only trade with capital they can afford to lose