USDCAD Classic Short Opportunity
The USDCAD currency pair has been somewhat of a nuisance to short sellers over the last few weeks, including the end of last week where we saw a spike of over 100 pips to conclude the trading week. We are now approaching major resistance again, the same resistance that was retested last week only to get rejected sharply to the downside. There will be another retest of this zone, in which we have a brilliant opportunity to go short. The rejection from last week also happened to line up with the 61.8 fibonacci retracement level from the Daily downside leg that started from around 1.292 and concluded the decline at 1.225. Personally I have a sell limit at 1.2615 with my stop loss going just above the previous high we made on the most recent bearish daily candle at 1.2650. Any movement above this level and we are likely to head much higher. However, I do not see that level being reached and I do see a double top forming at our major resistance, which will lead us to our first target of 1.2450.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.