This 4-hour chart of USD/CAD presents a bearish channel setup, signaling continuation of the downtrend. Here's a breakdown of the technical context:
Trend & Structure Analysis:
🔻 Descending Channel:
The price is respecting a downward-sloping channel (highlighted in red).
Lower highs are marked by red arrows showing consistent rejection at the upper trendline.
🔹 EMA Resistance:
EMA 9 (blue line) and EMA 21 (orange line) are above price and sloping downward.
The 9 EMA is currently at 1.38199, reinforcing resistance in this area.
🔹 Horizontal Levels:
Daily Resistance around 1.38554 has been rejected repeatedly.
Immediate support lies around 1.37603.
Fibonacci Levels & Bearish Projection:
Fibonacci retracement from a recent swing shows:
0.382 ≈ 1.38241
0.5 ≈ 1.38133 (currently acting as resistance)
Fibonacci Extensions (Downside Targets):
1.618 = 1.36972
2.618 = 1.35951
3.618 = 1.34930
4.236 = 1.34371 (aligns with Daily Demand Zone)
Trade Setup Idea (Short Bias):
Bias: Bearish while price stays below the descending channel’s upper boundary and EMA resistance.
Entry: Near 1.3813–1.3824 (after a potential pullback)
Stop-Loss: Above 1.3855 (daily resistance)
Targets:
TP1: 1.3760
TP2: 1.3697
TP3: 1.3595
TP4: 1.3437 (Daily Demand Zone)
Trend & Structure Analysis:
🔻 Descending Channel:
The price is respecting a downward-sloping channel (highlighted in red).
Lower highs are marked by red arrows showing consistent rejection at the upper trendline.
🔹 EMA Resistance:
EMA 9 (blue line) and EMA 21 (orange line) are above price and sloping downward.
The 9 EMA is currently at 1.38199, reinforcing resistance in this area.
🔹 Horizontal Levels:
Daily Resistance around 1.38554 has been rejected repeatedly.
Immediate support lies around 1.37603.
Fibonacci Levels & Bearish Projection:
Fibonacci retracement from a recent swing shows:
0.382 ≈ 1.38241
0.5 ≈ 1.38133 (currently acting as resistance)
Fibonacci Extensions (Downside Targets):
1.618 = 1.36972
2.618 = 1.35951
3.618 = 1.34930
4.236 = 1.34371 (aligns with Daily Demand Zone)
Trade Setup Idea (Short Bias):
Bias: Bearish while price stays below the descending channel’s upper boundary and EMA resistance.
Entry: Near 1.3813–1.3824 (after a potential pullback)
Stop-Loss: Above 1.3855 (daily resistance)
Targets:
TP1: 1.3760
TP2: 1.3697
TP3: 1.3595
TP4: 1.3437 (Daily Demand Zone)
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.
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.