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Market_ATM
Jan 29, 2020 9:32 AM

USDCAD Top Reversal Short

USD/CADOANDA

Description

Structure: Upward
Moving Average: 15 EMA supporting Price, expect to retest 200 SMA
Trendline: Short Term Uptrend Line Broken
Pattern: Strong Rejection Candles around 1.32, possible forming Head & Shoulder
Trigger: 2 attempts to break 1.32 failed, with large bearish candles yesterday, showed that bull power may have ran out of steam
Support: 1.3125, 1.3100, 1.3030
Resistance: 1.3200

After a huge rebound from 1.30 support, the pair stopped at 1.32, which is a previous Head & Shoulder neckline resistance.
It is likely completed a 5-wave upward move, and starting a ABC correction move.
With the relatively large downside potential, it is a good consideration to short here with small SL. Of course, wait for 1H rejection bearish candle.
Entry Area: 1.3175 - 1.3185
SL: 1.3210
1st Target: 1.3100
2nd Target: 1.3030
Comments
Market_ATM


Even with a more conservative play in Daily TF, this area is good point to sell USDCAD.
61.8% Fibo, round number and H&S neckline resistance provide a lot of selling power.
Entry around 1.3180 and 1.32
SL: 1.3350
TP: 1.2960
Market_ATM
Forgot to mention the dark-cloud cover candles formation yesterday.
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