USDCAD - 0 To 100 Real QuickLet's work our way down the big time frame. Everything is color-coded as follows.
montly = red
weekly = orange
daily = yellow
4hr = green
1hr = blue
Looking at the monthly you can see we have a nice broken trend line that was never retested, same line in confluence with the 61.8% fib retracement level. This is where I see the price going and therefore my target price.
Looking at the weekly zone you can see some nice order blocks along that nice weekly demand zone around the 1.3050 level rejecting the price right back up.
Now, another time frame down to the daily and you can see it broke the weekly support however it is still pretty much irrelevant as it has not fully broken, closed under, and retested that weekly zone on the weekly timeframe. The second reason is our entry point which I will explain between the 1hr and 4hr time frames. But you can clearly see the doji and shooting star where the price closed last, signaling a possible drop which is exactly why I believe a stop hunt down maybe possible especially Sunday after the market opens. However, knowing the overall direction of the price for the next week or two, I know that anything signaling sell would be type fakeout to me.
On the 4hr you can see price held, and formed a nice inverted head and shoulder pattern and started going up already making that retracement to our target. Price broke the neckline and is currently retesting the neckline at the market close.
Finally... between the 1hr and 30min you can see that the neckline retest is actually another inverted head and shoulder pattern retesting its own neckline.
I don't usually trade Sundays due to typical fakeouts and stop hunts, however, I feel very confident buying this after the market opens this upcoming Sunday.
