USDCAD | PERSPECTIVE FOR THE WEEKI had a Bearish bias last week with price moving over 100pips in our direction (see link below for reference purposes). Despite price action still portrays a dovish tendency, it is important to note that price is presently sitting on major Support/Resistance (see Day/Week Chart) which has been a sensitive Demand area multiple times in the past. As US job figures sparkle and against all expectations, the expectation of a break above 1.31500 in the coming week is strongly a possibility on my radar!
Tendency: Uptrend ( Bullish )
Structure: Trendline | Supply & Demand| Reversal Pattern (Harmonic: Cypher)
Observation: i. Since mid-July 2020, Price action has connected lower highs and lower lows with parallel trendlines to show a prevailing downward trend.
ii. Price crashed into and began a rally from an area that represents a major Support/Resistance level (Demand zone on the chart) in the past.
iii. Looking closely at the rally from the Demand zone, I noticed a structure that depicts a Harmonic move (Cypher pattern) represented by the following data;
a. Point B retracement of the primary XA leg lies in between 0.500/0.618.
b. Point C falls at an approximate of 1.414 extensions of the primary XA leg.
c. Expecting 0.786 retracements of XC @ around 1.30300 zone confirming completion of the harmonic pattern at point D.
iv. Having observed this, it's pertinent that I state here that a strong rejection of Key level with an engulfing candle shall force me to revert to last week's bias (see link below) as this means that the Buyers are yet to find the momentum to raise the roof!
Trading plan: BUY confirmation with a minimum potential profit of 250 pips.
Risk/Reward: 1:3
Potential Duration: 4 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.
