Over the last two days, CAD pairs have started to show strength causing the index to break above a descending trend line. Price seems it is still respecting the months long range this chart has been in. I'll be watching for CAD strength to show in the pairs. As the Index moves to the top of the range, new trends could form.
You have to be careful and analyze the price action before making the decision. We must think that nobody knows what will happen. I'm just trying to put the odds in my favor. Then the price will do what it has to do. So let's see what happens.
- Favoring the bullish scenario. Possible bullish price movement towards the next resistance 1.4380 within the next period. Supported by Upward sloping Moving Average.
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> psychology behind the trade
The technical structure made a double top pattern and after-touch there top it move to come down and given the indication to short, so in this trade, there is a high probability that I will get the target of the trade
Descending triangle almost confirmed, good entry could be the next bearish candle below the horizontal support as it confirms the pattern is complete.
I would expect the resulting downtrend to continue until the 1.40 support level.
Let me know what you think!