USDCAD: An Upcoming TREND CORRECTION
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🟢Forex Pair:
USD/CAD
⚪Technical Analysis:
At the beginning of February, once the price reached its secondary trendline, it got a new bearish rejection, falling quickly down through the S/R zone at 1.26750, endind its movement on the main support at about 1.25900.
This important support, rejected the price also on the 21th of January 2021, reversing with no hesitation a strong bearish impulse.
It is currently re-testing the same level, the RSI with 20 period shows a clear convergence in the daily perspective, and also still considering the same time frame, the price closed its last daily session with a doji candle, probably it's forming now an interesting morning star candlestick pattern, just above the main support.
🔴Conclusion:
Overall the market is still bearish, following this strong downtrend since the end of March 2020, but there is a possibility to see an interesting trend correction.
I'll be looking for the breakout of the minor trendline before planning my long position on this trade, waiting for a closing candle at about the level 1.27300, as a confirmation of the trendline's breakout, the take profit would be at level at about 1.2800/1.28400, a zone between the resistance level and the secondary trendline.
I'll update this idea eventually the price will follow our condition, otherwise a break down of the current level will invalidate our analysis.
Stay tuned for Updates and Trading Signals!
What's your opinion? Share your idea writing a comment!
⚠️Please note the views are not investment advice and should be used only for educational purposes⚠️
Trade Safe and Responsibly,
Gianni
🟢Forex Pair:
USD/CAD
⚪Technical Analysis:
At the beginning of February, once the price reached its secondary trendline, it got a new bearish rejection, falling quickly down through the S/R zone at 1.26750, endind its movement on the main support at about 1.25900.
This important support, rejected the price also on the 21th of January 2021, reversing with no hesitation a strong bearish impulse.
It is currently re-testing the same level, the RSI with 20 period shows a clear convergence in the daily perspective, and also still considering the same time frame, the price closed its last daily session with a doji candle, probably it's forming now an interesting morning star candlestick pattern, just above the main support.
🔴Conclusion:
Overall the market is still bearish, following this strong downtrend since the end of March 2020, but there is a possibility to see an interesting trend correction.
I'll be looking for the breakout of the minor trendline before planning my long position on this trade, waiting for a closing candle at about the level 1.27300, as a confirmation of the trendline's breakout, the take profit would be at level at about 1.2800/1.28400, a zone between the resistance level and the secondary trendline.
I'll update this idea eventually the price will follow our condition, otherwise a break down of the current level will invalidate our analysis.
Stay tuned for Updates and Trading Signals!
What's your opinion? Share your idea writing a comment!
⚠️Please note the views are not investment advice and should be used only for educational purposes⚠️
Trade Safe and Responsibly,
Gianni
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