USDCAD Analysis: Triple Tap Pattern
Updated
I have identified what I believe to be a significant pattern, the "Triple Tap," on the USDCAD currency pair. Let's break down the analysis:
Observation: We formed a higher high above the supply zone (TRAP), indicating potential trap conditions.
Pattern Recognition: The price has tested this supply zone three times without surpassing it in terms of value. We are currently within this zone, suggesting a consolidation.
Anticipated Setup: If this consolidation within the supply zone persists, a potential setup may be in the making.
Potential Trade Scenario:
Pattern Confirmation: Wait for a break below 1.33400.
Trade Execution: If the breakout occurs, consider going short.
Target Level: Target a key level below, such as 1.32620.
This analysis suggests the possibility of a bearish move if the price breaks below the identified level. However, it's essential to remember that trading involves inherent risks, and market conditions can change unexpectedly. Always practice risk management and consider a holistic approach to your analysis, incorporating both technical and fundamental factors.
Observation: We formed a higher high above the supply zone (TRAP), indicating potential trap conditions.
Pattern Recognition: The price has tested this supply zone three times without surpassing it in terms of value. We are currently within this zone, suggesting a consolidation.
Anticipated Setup: If this consolidation within the supply zone persists, a potential setup may be in the making.
Potential Trade Scenario:
Pattern Confirmation: Wait for a break below 1.33400.
Trade Execution: If the breakout occurs, consider going short.
Target Level: Target a key level below, such as 1.32620.
This analysis suggests the possibility of a bearish move if the price breaks below the identified level. However, it's essential to remember that trading involves inherent risks, and market conditions can change unexpectedly. Always practice risk management and consider a holistic approach to your analysis, incorporating both technical and fundamental factors.
Note
Look RSI ( divergence )
Look Pivot Daily for more confirmation
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