The pair has moved 700 pips as of recent, based on MACD and Retail money already heavily bought in looking like a potential short opportunity is among us.
MACD is is showing strong momentum into resistance, 700 pip run-up and retail money is way over invested.
If you saw my last post on USDCAD, we've got a very similar setup, previous strong rejection on the Daily, a bit of a retrace on weakening momentum, retail money starting to fade, with no real sell-off, would expect a big drop in the next few days.
Looking at the Daily, you can see major resistance marked by '1' and '2', we are now heading into an area of resistance. If you notice, slight MACD divergence and retail money moving in not as strong, also we had a very small sell off last time marked by the small red curve on the Sentiment indicator.
If we get a strong rejection look to sell.
We've got a great looking Bearish Morning Star Setup as seen on the left Daily Chart. The Entry will be on the break of the close from Friday's session.
On the right, I've moved into the 1 HR Chart, you can see a 12 PIP Stop loss setup ( or maybe even better if you wait for a small pull back and then bread down).
The Take Profit is identified by the previous...
As you can see from the Regression Trend, which contains 98% of the moves, we are starting to show weakness.
We haven't had a healthy pullback in quite a while, I'm suspecting big re-tracement soon.
Expected move at least 100 pips to the profit taking line, we had a rejection of the 9000 mark.
If you didn't panic sell and survived the ride, jump on the slide! Down we go.
We've got multiple factors of confluence, Daily Chart hitting previous support, now resistance. Bearish Divergence on both the Daily and Weekly charts. Also weakening Stochastic's on the 4 hour timeframe (not shown). Profit Target around 8863 shown by the $ sign
Looking for a small pop Monday, but staying below previous highs, if so this could be a great short entry; looking for a re-tracement of about 90 pips to the Green line for my take profit. Being an uptrend no, need need to get greedy on the pullback.