Demand Zone/Support Break Could Propel Loonie Towards 1.30200!
With the long term ascending triangle confirmed being breached on weekly charts, USDCAD will likely try to target 1.30200 level in the near term! However there are two obstacles that are still present which would likely restrict the price from falling further to our target:
1) The important Demand zone/support located at 1.32000 level
2) Long term ascending trendline
For the trade criteria to be met properly, we need both weekly and monthly candle to close below 1.32000 demand zone. This should confirm with high probability that indeed the level has been broken. For the last criteria, the long term ascending trendline also needs to break which should be confirmed by weekly candle breaching it properly.
After all this has taken place, a short trade can be executed with Target being 1.30200 and Stop loss above swing high with risk to reward ratio of 1:1.
Note: This is just an analysis/view and not a trade signal. Once if the criteria is met, trade details would be posted in a separate post. Lets see what happens. Cheers
1) The important Demand zone/support located at 1.32000 level
2) Long term ascending trendline
For the trade criteria to be met properly, we need both weekly and monthly candle to close below 1.32000 demand zone. This should confirm with high probability that indeed the level has been broken. For the last criteria, the long term ascending trendline also needs to break which should be confirmed by weekly candle breaching it properly.
After all this has taken place, a short trade can be executed with Target being 1.30200 and Stop loss above swing high with risk to reward ratio of 1:1.
Note: This is just an analysis/view and not a trade signal. Once if the criteria is met, trade details would be posted in a separate post. Lets see what happens. Cheers
