USDCAD Short-Term Buy Opportunity. Overall Bearish Bias
My Overall Bias is Bearish. Here is a chance to enter a buy.
-Price formed a Head and Shoulders pattern (which is a bearish candlestick pattern.
-Price broke the neckline (which previously acted as a support level) of the the Head and Shoulders pattern.
-After a nice sell off, price then found some support around the 1.25 level and formed a reversal candle stick on the daily time frame.
-If you go down to the 4hr, will notice price formed a double bottom (which signify bullish potential).
-I am expecting price to retrace to test the neckline and act as a form of resistance.
-When drawing the Fibonacci from the high of the right shoulder to the low area where price found support, you will notice that the 50.0 fib level aligns with the neckline of the head and shoulders pattern.
-I think this further increases the likelihood that price will retrace to test that area.
I am overall bearish on the US Dollar. Take a look at my analysis on the DXY to further explain my reasoning.
Like, Comment, Follow for more. If you see something different or disagree, feel free to post your own analysis in the comments!
-Price formed a Head and Shoulders pattern (which is a bearish candlestick pattern.
-Price broke the neckline (which previously acted as a support level) of the the Head and Shoulders pattern.
-After a nice sell off, price then found some support around the 1.25 level and formed a reversal candle stick on the daily time frame.
-If you go down to the 4hr, will notice price formed a double bottom (which signify bullish potential).
-I am expecting price to retrace to test the neckline and act as a form of resistance.
-When drawing the Fibonacci from the high of the right shoulder to the low area where price found support, you will notice that the 50.0 fib level aligns with the neckline of the head and shoulders pattern.
-I think this further increases the likelihood that price will retrace to test that area.
I am overall bearish on the US Dollar. Take a look at my analysis on the DXY to further explain my reasoning.
Like, Comment, Follow for more. If you see something different or disagree, feel free to post your own analysis in the comments!
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