USDCAD Short opportunity
Higher timeframes are in a clear downtrend and 4 weeks ago the weekly chart offered a clean rejection off the 50 period EMA with a shooting star formation, hinting that the bearish trend may be resuming soon. Then price has been consolidating for a few weeks.
Now we have a clean 4H ascending channel and price seems to be rejecting an area of strong confluences, with horizontal resistance, as well as TL resistance, we find patterns within patterns, very good. A clean intraday rejection off this area, may trigger a move downwards in the direction of the main trend.
I have 3 potential targets for this move:
1. Recent lows at the lower bound of the ascending channel, price could still reject this level once more.
2. double bottom area: Price might reject previous 4H lows and create deeper structure, so we need to be ready for any indications of this happening.
3. Ideally I would like to hod this to the next 1.27 fib extension which is in the area of the daily 50EMA, which is also a strong area of S&R.
Feel free to like/follow if you agree or comment below and share your thoughts!
Looking forward to hearing different opinions!=)
Now we have a clean 4H ascending channel and price seems to be rejecting an area of strong confluences, with horizontal resistance, as well as TL resistance, we find patterns within patterns, very good. A clean intraday rejection off this area, may trigger a move downwards in the direction of the main trend.
I have 3 potential targets for this move:
1. Recent lows at the lower bound of the ascending channel, price could still reject this level once more.
2. double bottom area: Price might reject previous 4H lows and create deeper structure, so we need to be ready for any indications of this happening.
3. Ideally I would like to hod this to the next 1.27 fib extension which is in the area of the daily 50EMA, which is also a strong area of S&R.
Feel free to like/follow if you agree or comment below and share your thoughts!
Looking forward to hearing different opinions!=)
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.