USD/CAD: a potential build-up for a 100-pip drop
Looking at the 2D timeframe chart of USD/CAD, we may observe that a descending triangle pattern has been formed and that the price has successfully broken the upper boundary (the descending trendline) of it. Using the Fibonacci retracement tool, we might identify that the 38.2% key Fibonacci level nicely lines up with a crucial area of previous resistance that now acts as support that is identified on the graph.
We are expecting for the price to continue its short-term bearish movements and reach the price level highlighted on the graphic. From there, due to the fact that our bias remains bullish, we will possibly look into executing long positions and riding the next up-trending wave.
We are expecting for the price to continue its short-term bearish movements and reach the price level highlighted on the graphic. From there, due to the fact that our bias remains bullish, we will possibly look into executing long positions and riding the next up-trending wave.
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.