USDCAD Shorting!
Hey Traders!!
Currently, the USDCAD pair is consolidating within a rectangular price range, with the lower boundary align closely with a short-term (1-hour) support level that has held firm through recent volatility. This consolidation suggests a temporary equilibrium between buyers and sellers. Given the recent bullish momentum defending this 1H support, there’s a strong likelihood the pair will retrace upward to retest the rectangle’s resistance zone. If this resistance holds—marked by signs of bearish rejection, the pair may reverse lower to target the broader 4-hour timeframe support structure, which aligns with the larger trend’s key demand area.
To strengthen this thesis, traders should watch for:
Confirmation Signals: A decisive close below the 1H support or failure to breach resistance could invalidate the setup.
Momentum Alignment: Bearish divergence on the 4H chart or weakening buying volume during the retest.
Risk Management: Positioning stops above the rectangle’s resistance (or a recent swing high) to guard against false breakdowns.
Does this technical narrative resonate with your observations?
Currently, the USDCAD pair is consolidating within a rectangular price range, with the lower boundary align closely with a short-term (1-hour) support level that has held firm through recent volatility. This consolidation suggests a temporary equilibrium between buyers and sellers. Given the recent bullish momentum defending this 1H support, there’s a strong likelihood the pair will retrace upward to retest the rectangle’s resistance zone. If this resistance holds—marked by signs of bearish rejection, the pair may reverse lower to target the broader 4-hour timeframe support structure, which aligns with the larger trend’s key demand area.
To strengthen this thesis, traders should watch for:
Confirmation Signals: A decisive close below the 1H support or failure to breach resistance could invalidate the setup.
Momentum Alignment: Bearish divergence on the 4H chart or weakening buying volume during the retest.
Risk Management: Positioning stops above the rectangle’s resistance (or a recent swing high) to guard against false breakdowns.
Does this technical narrative resonate with your observations?
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.
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.