USDCAD | Perspective for the new weekWith 102pips in our direction before the reversal on my last publication (see link below for reference purposes); we are at a juncture in the market with a viable opportunity to take advantage of. The Impulse move that begun mid-November 2020 appears to have found a bottom as the rejection of demand level @ CA$1.26500 area continue to gain momentum. Even though the USD/CAD pair came under renewed bearish pressure in the early session on Friday, I continue to see an opportunity to go Long as this Bearish move from my perspective is a corrective move following the successful Breakout of Bearish Trendline.
Tendency: Uptrend ( Bullish )
Structure: Reversal pattern | Breakout | Supply & Demand | Double Top
Observation: i. A visible Reversal structure is observed as price no longer deems it fit to respect the Bearish Trendline.
ii. Breakout of Bearish Trendline during last week trading session is a signal that we might be changing direction in the nearest future.
iii. Double Top at CA$1.28820 represent the beginning of the corrective phase of the Impulsive Breakout on the 27th of Jan 2020.
iv. I shall be anticipating the exhaustion of the Bearish steam around the Bearish trendline and Demand zone followed by signs of a rally in the following week(s).
Trading plan: BUY confirmation with a minimum potential profit of 300 pips.
Risk/Reward : 1:3.5
Potential Duration: 5 to 10 days
NB: This speculation can be considered to make decisions on lower timeframes.
Watch this space for updates as price action is been monitored.
Risk Disclaimer:
Margin trading in the foreign exchange market (including foreign exchange trading, CFDs, etc.) has a high risk and is not suitable for all investors. The content of this speculation (including all data) is organized and published by me for the sole purpose of education and assistance in making independent investment decisions. All information herein is for your reference only and I take no responsibility.
You are hereby advised to carefully consider your investment experience, financial situation, investment objective, risk tolerance level, and consult your independent financial adviser as to the suitability of your situation prior to making any investment.
I do not guarantee its accuracy and is not liable for any loss or damage which may result directly or indirectly from such content or the receipt of any instruction or notification therewith.
Past performance is not necessarily indicative of future results.
