A potential trend following short trade on USD/CAD is indicated by the current daily resistance. The daily candle is showing a strong bearish reaction, suggesting a sell opportunity.
Upon observing the 1-hour chart, there are clues such as the formation of a trend line. The market repeatedly touched and moved upwards along this trend line, but it has now broken below, indicating a shift.
Additionally, a head and shoulders pattern has formed on the chart. The neckline of this pattern has been breached to the downside, signaling a bearish trend.
Entry 1.35865
Stop loss 1.3630
Targets 1.3525 & 1.3490
Upon observing the 1-hour chart, there are clues such as the formation of a trend line. The market repeatedly touched and moved upwards along this trend line, but it has now broken below, indicating a shift.
Additionally, a head and shoulders pattern has formed on the chart. The neckline of this pattern has been breached to the downside, signaling a bearish trend.
Entry 1.35865
Stop loss 1.3630
Targets 1.3525 & 1.3490