After taking a 200pips gain in our last publication on this pair (see link below for reference purposes), it appears we are at a juncture for a second wave of shorting the USDCAD as price breaks down my key level @ CAD1.30700. Despite making the previous four trading days in the positive territory, the USD/CAD pair rose to its highest level during the last week at CAD1.31740 on Friday only to experience a sharp rejection of this level with a Shooting star candle. Even though I have this intuition that the price of oil will surge soon, It is worthy to note that the performance of oil in the coming week shall be a significant point of reference to make a decision on this pair.
Tendency: Downtrend ( Bearish )
Structure: Breakdown | Supply & Demand | Trendline
Observation: i. As price continues to respect the major Trendline since May 2020; a Breakdown of Key level @ 1.30700 on the 5th of Nov. 2020 is a clue that the Trend might continue considering the Selling pressure at this juncture in the market.
ii. 1.31300 area which has been a Demand zone in the past appears to have been taken over by Sellers as this level no longer hold a haven for buyers.
iii. Our New Supply zone @ 1.32000 & 1.31500 which is also forming a Double Top pattern confirms the strength and presence of Sellers.
iv. We experienced significant growth in the Greenback last week but I am considering this minor uptrend to be a correction phase that might hit around 61.8% retracement in anticipation of a decline.
Trading plan: SELL confirmation with a minimum potential profit of 450 pips.
Risk/Reward: 1:3.5
Potential Duration: 5 to 10 days
NB: This speculation can be considered to make decisions on lower timeframes.
Watch this space for updates as price action is been monitored.
Risk Disclaimer:
Margin trading in the foreign exchange market (including foreign exchange trading, CFDs, etc.) has a high risk and is not suitable for all investors. The content of this speculation (including all data) is organized and published by me for the sole purpose of education and assistance in making independent investment decisions. All information herein is for your reference only and I take no responsibility.
You are hereby advised to carefully consider your investment experience, financial situation, investment objective, risk tolerance level, and consult your independent financial adviser as to the suitability of your situation prior to making any investment.
I do not guarantee its accuracy and is not liable for any loss or damage which may result directly or indirectly from such content or the receipt of any instruction or notification therewith.
Past performance is not necessarily indicative of future results.
Tendency: Downtrend ( Bearish )
Structure: Breakdown | Supply & Demand | Trendline
Observation: i. As price continues to respect the major Trendline since May 2020; a Breakdown of Key level @ 1.30700 on the 5th of Nov. 2020 is a clue that the Trend might continue considering the Selling pressure at this juncture in the market.
ii. 1.31300 area which has been a Demand zone in the past appears to have been taken over by Sellers as this level no longer hold a haven for buyers.
iii. Our New Supply zone @ 1.32000 & 1.31500 which is also forming a Double Top pattern confirms the strength and presence of Sellers.
iv. We experienced significant growth in the Greenback last week but I am considering this minor uptrend to be a correction phase that might hit around 61.8% retracement in anticipation of a decline.
Trading plan: SELL confirmation with a minimum potential profit of 450 pips.
Risk/Reward: 1:3.5
Potential Duration: 5 to 10 days
NB: This speculation can be considered to make decisions on lower timeframes.
Watch this space for updates as price action is been monitored.
Risk Disclaimer:
Margin trading in the foreign exchange market (including foreign exchange trading, CFDs, etc.) has a high risk and is not suitable for all investors. The content of this speculation (including all data) is organized and published by me for the sole purpose of education and assistance in making independent investment decisions. All information herein is for your reference only and I take no responsibility.
You are hereby advised to carefully consider your investment experience, financial situation, investment objective, risk tolerance level, and consult your independent financial adviser as to the suitability of your situation prior to making any investment.
I do not guarantee its accuracy and is not liable for any loss or damage which may result directly or indirectly from such content or the receipt of any instruction or notification therewith.
Past performance is not necessarily indicative of future results.
Trade smart. Trade consciously
