USD/CAD reversal pattern suggests taking a short position.
Updated
USD/CAD reversal pattern suggests taking a short position.
TECHNICAL ANALYSIS: The USD/CAD has formed and a head and shoulders pattern, indicating an imminent trend reversal. This is after the price formed an uptrend last week. Furthermore, the price hovered around the downwards trend line but did not fully breakout - showing a greater confirmation of a downtrend appearing. Enter when your indicators line up or the market price crosses below the neckline.
FUNDAMENTAL ANALYSIS: US are releasing retail sales later today (forecasted at 8% growth from -16.4%). Although, the economy is still in a dire state with a recession looming. Therefore it is unlikely the Fed will considerably adjust rates yet. Canada's inflation rate is released tomorrow. Predictions are up from 1.2% to 1.4%, still in Canada's target of 1-3%. Though as it is closer to the lower bound the Bank of Canada is unlikely to remove dovish pressures.
TECHNICAL ANALYSIS: The USD/CAD has formed and a head and shoulders pattern, indicating an imminent trend reversal. This is after the price formed an uptrend last week. Furthermore, the price hovered around the downwards trend line but did not fully breakout - showing a greater confirmation of a downtrend appearing. Enter when your indicators line up or the market price crosses below the neckline.
FUNDAMENTAL ANALYSIS: US are releasing retail sales later today (forecasted at 8% growth from -16.4%). Although, the economy is still in a dire state with a recession looming. Therefore it is unlikely the Fed will considerably adjust rates yet. Canada's inflation rate is released tomorrow. Predictions are up from 1.2% to 1.4%, still in Canada's target of 1-3%. Though as it is closer to the lower bound the Bank of Canada is unlikely to remove dovish pressures.
Trade closed: stop reached
Completely whipsawed out of that one on the first touch. May still be an opportunity later though.
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