USDCAD | Perspective for the new week | Follow-up details
As price moved in our direction since my last publication on this pair, we scooped over 350pips (see link below for reference purposes) before the reversal setup began. As at the moment, it appears that we are on the verge of a risk of further decline in the coming week(s) as the Dollar lost all it gained during the month of September 2021 and with the appearance of Head & Shoulder look alike, the possibility of a reversal increases.
The Greenback may continue to decline in the coming week as the U.S. yields dropped despite stronger than expected inflation and consumer spending.
Tendency: Downtrend (Bearish)
Structure: Supply & Demand | Trendline | Reversal pattern (Head and Shoulder)
Observation: i. The Loonie has been on a downward spiral since mid last year and the appearance of a reversal pattern at exactly 38.2% retracement of the Bearish Impulse leg cited on the weekly chart might be a signal confirming a risk of further decline in the coming week(s).
ii. The visual representation of a line drawn under pivot lows reveals the bullish momentum of price action since the month of June 2021 but a drop in momentum can be seen in the recent pivot point as the price did not launch as high as the previous before the second breakdown of Trendline.
iii. A baseline noted on the chart with three peaks, where the outside two are close in height and the middle is highest describes a specific formation that predicts a bullish-to-bearish trend reversal.
iv. Completion of the reversal pattern can be confirmed at Breakdown/Retest of Neckline in the coming week as below C$1.26300 remains a comfortable level to sell the Dollar.
v. It is worthy to note that C$1.263000 has a memory for selling opportunities in recent times (April 2021).
vi. A Breakdown of the Neckline and Key level is a confluence for selling opportunities in the coming week with an option to add to our existing position at Breakdown/Retest of C$1.25000 level.
NB: It is very possible that the projected decline in price might be a short term trend... Trade consciously!😊
Trading plan: SELL confirmation with a minimum potential profit of 300 pips.
Risk/Reward: 1:4
Potential Duration: 3 to 10days
NB: This speculation might be considered to make individual decisions on the lower timeframe.
Watch this space for updates as price action is been monitored.
Risk Disclaimer:
Margin trading in the foreign exchange market (including commodity trading, CFDs, stocks etc.) has a high risk and is not suitable for all investors. The content of this speculation (including all data) is organized and published by me for the sole purpose of education and assistance in making independent investment decisions. All information herein is for your reference only and I take no responsibility.
You are hereby advised to carefully consider your investment experience, financial situation, investment objective, risk tolerance level, and consult your independent financial adviser as to the suitability of your situation prior to making any investment.
I do not guarantee its accuracy and is not liable for any loss or damage which may result directly or indirectly from such content or the receipt of any instruction or notification therewith.
Past performance is not necessarily indicative of future results.
The Greenback may continue to decline in the coming week as the U.S. yields dropped despite stronger than expected inflation and consumer spending.
Tendency: Downtrend (Bearish)
Structure: Supply & Demand | Trendline | Reversal pattern (Head and Shoulder)
Observation: i. The Loonie has been on a downward spiral since mid last year and the appearance of a reversal pattern at exactly 38.2% retracement of the Bearish Impulse leg cited on the weekly chart might be a signal confirming a risk of further decline in the coming week(s).
ii. The visual representation of a line drawn under pivot lows reveals the bullish momentum of price action since the month of June 2021 but a drop in momentum can be seen in the recent pivot point as the price did not launch as high as the previous before the second breakdown of Trendline.
iii. A baseline noted on the chart with three peaks, where the outside two are close in height and the middle is highest describes a specific formation that predicts a bullish-to-bearish trend reversal.
iv. Completion of the reversal pattern can be confirmed at Breakdown/Retest of Neckline in the coming week as below C$1.26300 remains a comfortable level to sell the Dollar.
v. It is worthy to note that C$1.263000 has a memory for selling opportunities in recent times (April 2021).
vi. A Breakdown of the Neckline and Key level is a confluence for selling opportunities in the coming week with an option to add to our existing position at Breakdown/Retest of C$1.25000 level.
NB: It is very possible that the projected decline in price might be a short term trend... Trade consciously!😊
Trading plan: SELL confirmation with a minimum potential profit of 300 pips.
Risk/Reward: 1:4
Potential Duration: 3 to 10days
NB: This speculation might be considered to make individual decisions on the lower timeframe.
Watch this space for updates as price action is been monitored.
Risk Disclaimer:
Margin trading in the foreign exchange market (including commodity trading, CFDs, stocks etc.) has a high risk and is not suitable for all investors. The content of this speculation (including all data) is organized and published by me for the sole purpose of education and assistance in making independent investment decisions. All information herein is for your reference only and I take no responsibility.
You are hereby advised to carefully consider your investment experience, financial situation, investment objective, risk tolerance level, and consult your independent financial adviser as to the suitability of your situation prior to making any investment.
I do not guarantee its accuracy and is not liable for any loss or damage which may result directly or indirectly from such content or the receipt of any instruction or notification therewith.
Past performance is not necessarily indicative of future results.
Trade smart. Trade consciously
