USDCAD - Best Bounce-Back Buy-Trade
Updated
Hi Traders!
The market is in a Downtrend.
When we zoom out the chart - or when we switch to the D1-Timeframe - we can
see the market was racing up with high momentum in the beginning.
But suddendly it made a 180° U-Turn and falled back.
Then the consolidation started.
Anyway, the consolidation is over now.
This consolidation seemed to be endless, until we drawed another important
Structure Level: The Daily Trendline.
This Trendline is descending and comes from way up high.
In the end stage of the Consolidation you can see how the Trendline was pushing down the price.
That is the reason why the Support couldn't hold the pressure anymore and has been broken out.
NOW we can expect this situation:
The price is falling towards a Support-Area (green Box), which was lastly touched a month ago.
So, it is likely to bounce back from that Level.
The Target is the previous Support( which is now a Resistance).
We recommend to trade the Breakout with Reversal Pattern Trigger (e.g. Candle Stick Pattern).
Thanks and successful Trading :)!
The market is in a Downtrend.
When we zoom out the chart - or when we switch to the D1-Timeframe - we can
see the market was racing up with high momentum in the beginning.
But suddendly it made a 180° U-Turn and falled back.
Then the consolidation started.
Anyway, the consolidation is over now.
This consolidation seemed to be endless, until we drawed another important
Structure Level: The Daily Trendline.
This Trendline is descending and comes from way up high.
In the end stage of the Consolidation you can see how the Trendline was pushing down the price.
That is the reason why the Support couldn't hold the pressure anymore and has been broken out.
NOW we can expect this situation:
The price is falling towards a Support-Area (green Box), which was lastly touched a month ago.
So, it is likely to bounce back from that Level.
The Target is the previous Support( which is now a Resistance).
We recommend to trade the Breakout with Reversal Pattern Trigger (e.g. Candle Stick Pattern).
Thanks and successful Trading :)!
Note
This is the RED BOX, but in big:
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