Short

USDCAD: Structural Trade with Fib Clusters

By akhostov

Updated

Identify:

Price Action has bounced off a trend line 3 times.
Price Action making new structure lows (Bearish Bias)
There is a fib cluster that matches the structural zone shown in red where the high and low of the zone are based off structural levels and the fib retracement levels.
Another fib cluster for potential targets found between 1.294 and 1.298
Bullish RSI Divergence

Predict:

Price Action may rise to the zone between 1.313 and 1.315 — satisfies a short-term bullish move
Upon reaching the “reversal zone”, the pair may continue down and break structural lows and continue down to the blue target zone.
If price action continues, then we may be looking at a possible bat pattern forming… although too early to tell.

Note

so far so good. Price action did go beyond the trendline, but quickly came back down and is back at support around 1.305

akhostov

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