Reasons To Short:
4 times rejections from top
upward Channel
Bearish Divergence
Reversal Pattern
Upward Channel Compression Breakout
Nice Consolidation Area
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See the emergence of a Cup and Handle Price formation, as well as what seems to be a rounded bottom which suggests a reversal.
RSI suggests some fluctuation, however range has subsisted mostly within channel and we are likely to see a downtrend.
Good to start Mondays like this...
B Point of our pattern is almost near 61.8% which results in deep bat pattern completion just around X, which reduces our risk too.This pattern has very good risk reward , even our initial targets have more than 1:2 ratio.
As of now USDCAD is about to complete the bearish bat pattern and its just short of 37 pips from our entry...
Looking at the weekly chart, you can see price broke through a HL at the 1.2830 level. Price then pulled back into the bullish weekly candle that created the move down. Missing this opportunity to go short i waited for price to again close below the 1.2830 level, I will probably wait for mondays or tuesday high before shorting. i don't believe price will move...
Sunday analysis;
2 ways to trade.
1. As you can see there is a possiblity if the market continues to go down that there is a head & shoulders.
2. If the market breaks the upper trend line, you can buy up to the blue rectangle. (If there is a break out even go higher)
NOTE! Head & shoulders is not yet formed.
Nice shorting opportunity after a decent pull back and retest of the descending trendline. Risk to reward is massively in our favour. Lets wait for a signal on the lower timed frames.
Technically , beside the completion of the butterfly pattern at structure zone , the crude oil is expected to rally after the bull back and the resistance will become support level at $46.60 per barrel , this might will appreciate the loonie .
