Possible Skyscraper on USDCAD

23 Okt

we broke monthly resistance. If we can close above this level in the next 8 days, we are looking at around 1100 pip gain from the retest.

23 Okt

Catatan

I can see this as being a very phycological level for various reasons.

1. It has retested and not broken resistance back to back on the monthly 6 times in 2 years.

2. Price created a sell trap last month by giving a bearish engulfing and then a retest like a head and shoulder pattern. However the pattern never completed and the retest was completely bullyish engulfed as of yet.

3. Based on all these factors I can see most traders selling. Because that's just what they do. They take the first pattern they see, and just be eager and desperate and inpatient.