USDCAD, Several Range Bounces, Targets Ahead When Confirmed!
Hello Traders Investors And Community, welcome to this update analysis about the current price action in USDCAD, which formation we are building and what we can expect from the upcoming time and result in further price-movement, there are some important and significant signs which I discovered and making it clearer to me in which direction we will follow through with USDCAD, there is an underlying bullish edge in the price as we are still in a consolidation that can change into a heavy and consequential breakout, therefore we are looking at the locally 4-hour timeframe.
As you can see in my chart USDCAD build an overall consolidation tightening range the last time, this is in almost all occasions a formation which will show a heavy breakout in either direction because the price is consolidating ever so tightly before a shift in a direction comes which will establish a bullish or bearish trend. At the moment we have a strong support zone between the 1.386 and 1.391 zone which you can see marked in blue in my chart, this support zone USDCAD confirmed several times and is now consisting as an important and strong support level where we highly likely bounce further when touched again.
Together with the 400-EMA which you can watch marked in black and the strong support, we have here it is building and coherent confluence-cluster there and also the lower boundary of the triangle we are currently trading in. For a position on the long-side, this is a perfect entry-level to aim the short-term and long-term targets you have in the chart with a tight stop-loss below the support level, because it is highly possible that we will bounce at the support again the trade takes a profitable edge and good risk-reward. The more conservative approach is to wait till the price has confirmed above the falling light blue trend-line which is also not a bad idea for traders with higher risk preferences.
Overall we can say that we will see a meaningful and fundamental price squeeze as soon the price cross and confirms above the higher boundary of the triangle. After that confirmation, the targets you can see in the chart will be activated and when we do not get any new bearish signs on the way for example when the short-term-target was realized we have a high chance to fully realize also the middle-term-target. After this was reached we have to elevate and see how USDCAD can continue, although the possibility at the moment is not high that we will get bearish pressure that can change when we confirm below the support but that is not likely because the level is really strong.
In this manner, thanks for watching everybody and support for more market insight! ;)
After the confirmation will come a determined breakout in the proper direction.
Information is for educational purposes only and should not be considered to take action in the markets.
As you can see in my chart USDCAD build an overall consolidation tightening range the last time, this is in almost all occasions a formation which will show a heavy breakout in either direction because the price is consolidating ever so tightly before a shift in a direction comes which will establish a bullish or bearish trend. At the moment we have a strong support zone between the 1.386 and 1.391 zone which you can see marked in blue in my chart, this support zone USDCAD confirmed several times and is now consisting as an important and strong support level where we highly likely bounce further when touched again.
Together with the 400-EMA which you can watch marked in black and the strong support, we have here it is building and coherent confluence-cluster there and also the lower boundary of the triangle we are currently trading in. For a position on the long-side, this is a perfect entry-level to aim the short-term and long-term targets you have in the chart with a tight stop-loss below the support level, because it is highly possible that we will bounce at the support again the trade takes a profitable edge and good risk-reward. The more conservative approach is to wait till the price has confirmed above the falling light blue trend-line which is also not a bad idea for traders with higher risk preferences.
Overall we can say that we will see a meaningful and fundamental price squeeze as soon the price cross and confirms above the higher boundary of the triangle. After that confirmation, the targets you can see in the chart will be activated and when we do not get any new bearish signs on the way for example when the short-term-target was realized we have a high chance to fully realize also the middle-term-target. After this was reached we have to elevate and see how USDCAD can continue, although the possibility at the moment is not high that we will get bearish pressure that can change when we confirm below the support but that is not likely because the level is really strong.
In this manner, thanks for watching everybody and support for more market insight! ;)
After the confirmation will come a determined breakout in the proper direction.
Information is for educational purposes only and should not be considered to take action in the markets.
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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.
►✅JOIN THE BEST+ TOP TELEGRAM TRADING CHANNEL: t.me/VincePrinceForexGoldStocks
►🚀Write To Join the Elite VIP Signal Channels: @Vince_Prince
►🔥JOIN BYBIT TOP EXCHANGE►🎁 UP TO $30,000 BONUS NOW: partner.bybit.com/b/VinceByBit
►🚀Write To Join the Elite VIP Signal Channels: @Vince_Prince
►🔥JOIN BYBIT TOP EXCHANGE►🎁 UP TO $30,000 BONUS NOW: partner.bybit.com/b/VinceByBit
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.