USDCAD: Head and Shoulders DestructionThe market makers did everything they could to wipe out every single retail player that trades this setup.
The liquidated not only the swing traders from the breakout but also the positional traders with stops above the highest point.
Now that this liquidity has been captured from the market, do you think we will see some downside?
Usdcadbuy
USDCAD Potential Buy @SupportUSDCAD has given us a nice pullback to support around the 1.27800 level, price broke through this level as resistance earlier this month and is now retesting it as support. With interest rate hikes coming in 2022 we can expect dollar bulls entering the market. This may be yet another pivotal moment to see USDCAD take another move to the upside
USDCAD will be messy....The dollar cad broke uptrend structure and now we are expecting some range bound trading until a clear direction is formed. At these levels, I am looking to enter a short position.
BEAR CASE
In the next week, I am expecting a slight move upwards to retest the bottom channel line and then for price to dump to retest 1.26
BULL CASE
Though unlikely, we need to consider the case where there is one more push up to retest 1.30, if the bottom of the channel line doesn't give us the resistance that we are looking for, and serves as a support for a up move, we may enter a long trade.
USDCAD - Short-term BUYThe USDCAD medium-term break at 1.2860 did not happen as yet.
We stalled and strongly came off.
Now current 1.2641 seems on low side, and besides we got a very low Stochastic RSI not seen for some time.
I suspect we should be buying here and stop-loss below 1.2575 to be safe. Objective would be a 200 pips upward potential is my personal view.