USDCAD - Bearish Breakdown and Fibonacci Retracement
After price failed to produce a new high above the 1.44675 level, it suggested a potential shift in momentum, with the bullish trend weakening. This was confirmed when price created a new swing low after breaking a significant structure level, indicating a bearish market shift. Following the bearish break of structure, price retraced to the 50% Fibonacci level, which is a key area to watch for resistance in the continuation of the downtrend.
My potential target is the demand zone that created the current swing highs, as this could act as support and lead to either a reversal or continued movement in the direction of the trend. I plan to enter short near the 50% Fibonacci level, provided there is bearish confirmation, such as rejection or a bearish candlestick pattern. My stop loss will be placed above the recent high at 1.44675 or slightly higher to manage risk.
The take profit target is set at the demand zone that created the swing highs, where I will closely monitor price action for any reversal signals. I will stay flexible and adjust the trade as needed if the price action indicates a change in momentum.
My potential target is the demand zone that created the current swing highs, as this could act as support and lead to either a reversal or continued movement in the direction of the trend. I plan to enter short near the 50% Fibonacci level, provided there is bearish confirmation, such as rejection or a bearish candlestick pattern. My stop loss will be placed above the recent high at 1.44675 or slightly higher to manage risk.
The take profit target is set at the demand zone that created the swing highs, where I will closely monitor price action for any reversal signals. I will stay flexible and adjust the trade as needed if the price action indicates a change in momentum.
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