USD/CAD has been melting to the downside following the bull's capitulation out of a rising trend from 1.3060s resistance. The following illustrates the bearish bias on the 4-hour chart.
The price rallied into a well-respected resistance zone and has been in the hands of the bears since the start of this week. The market left behind a harmonic pattern in the same time frame and we are seeing a series of lower lows.
Crucially, the price has broken a key support area, the neckline of the harmonic pattern near 1.2935. The price is retesting this as resistance and a little higher, near 1.2960. If these structures hold, then the bears will strap in for an accelerated move to the downside to challenge below key support of 1.2895 to target 50 pips lower.
The price rallied into a well-respected resistance zone and has been in the hands of the bears since the start of this week. The market left behind a harmonic pattern in the same time frame and we are seeing a series of lower lows.
Crucially, the price has broken a key support area, the neckline of the harmonic pattern near 1.2935. The price is retesting this as resistance and a little higher, near 1.2960. If these structures hold, then the bears will strap in for an accelerated move to the downside to challenge below key support of 1.2895 to target 50 pips lower.
** Please LIKE 👍, FOLLOW ✅, SHARE 🙌 and COMMENT ✍ if you enjoy this idea!
Follow me at FXStreet: fxstreet.com/author/ross-j-burland
Come on over to my YouTube channel and Level Up your trading! 💸💸💸💸💸 @RJBforex, Like and Subscribe!
Follow me at FXStreet: fxstreet.com/author/ross-j-burland
Come on over to my YouTube channel and Level Up your trading! 💸💸💸💸💸 @RJBforex, Like and Subscribe!
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
** Please LIKE 👍, FOLLOW ✅, SHARE 🙌 and COMMENT ✍ if you enjoy this idea!
Follow me at FXStreet: fxstreet.com/author/ross-j-burland
Come on over to my YouTube channel and Level Up your trading! 💸💸💸💸💸 @RJBforex, Like and Subscribe!
Follow me at FXStreet: fxstreet.com/author/ross-j-burland
Come on over to my YouTube channel and Level Up your trading! 💸💸💸💸💸 @RJBforex, Like and Subscribe!
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.