Caddy Longs USDCAD is looking bullish, with a break off a descending trend line and a formation of higher highs and a previous higher low on the 3rd touch of the counter trend I do expect cad to potentially rise up to 1.31
Caddy
CADDY LONG LEGSOn the daily tf, just about an hour before the US Session. We have caddy showing us a potential Long leg to the upside that we can expect to reach over the next few weeks.
Reason behind this is that market structure wise the pair is up trending, over the last week we made a strong bearish leg however it was not strong enough to break structure on the previous lows at 1.2300. From this if we manage to sustain 1.25 thus forming a higher swing low we can expect cad to launch all the way to 1.3100.
Sell the rally#USDCAD: Price is constantly making new lows within the falling wedge. Expectations are for price to go further down. For now rallies should be used to get into shorts with a target of 1.2525. A close above 1.2760 will negate the bearish bias
Hot knife thruogh butter#Caddy sitting on a very strong demand zone. Should the bears manage to take price through 1.2580, we could see price freefall from there.
Caddy to going lower#USDCAD: Price broke through the bottom of the channel. 3 months of sideways action & the bears are ready to take price lower to test the 1.2600 level. More buyers are seen @ 1.2550 where price is expected to bounce
USD/CAD came to retest the newly formed resistanceUSD/CAD has developed a nice bearish momentum after breaking the 4h timeframe trendline (around 1.30000). We are also in a descending channel on daily timeframe so the overall bias on the Loonie is bearish. The price has made a huge drop all the way to the 1.2920 area where it has found support. With the move to the downside yestersterday we have also broken the support that was set in the 1.2955 area and the price has now came to retest it. This sell zone has confluence with 50.0% fib retracement from the move yesterday and also a bearish flag/wedge pattern. Happy trading everyone!
