USDCAD | Perspective for the new weekMy last speculation saw the price move over 150pips in our direction before the bulls took over ( see link below for reference purposes). Since breaking above the $1.25000 level in July 2021, I am labelling this level to be a very strong demand zone for the Greenback considering that the obvious that it has held price "supported' in the last couple of months. Since the value of the Loonie is directly connected to the oil situation. It is important to take into consideration that oil inventories are currently down from what they used to be prior to the Covid-19 pandemic. Coupled with the Hurricane Ida situation, there is more supply than demand which could have a negative impact on the Loonie in the coming week(s).
Tendency: Uptrend (Bullish)
Structure: Supply & Demand | Trendline
Observation: i. Since hitting a peak @ $1.29500 on the 20th of August 2021, the price of USD have tumbled drastically and it is finally at our Demand zone.
ii. The visual representation of a line drawn under pivot lows reveals the prevailing direction of price since June 2021. However, a sudden Breakdown of this Trendline (whatever way you draw your line) during last week trading session cast some doubt on the Bullish tendency on this pair.
iii. At this juncture it is indeed appropriate that we remain patient and observe how price reacts to the Major Demand zone @ $1.25000/1.24200 area for confirmations.
iv. To support my Bullish expectation on this pair, I shall be looking for rejections or engulfing candles off of the Key level @ $1.25000 (above key level - safe haven) in the coming week(s).
v. Should price drop below Key level, then this will make the Breakdown of Bullish Trendline valid. Hence, a retest shall give me no choice but to switch bias in support of the Bears... Trade consciously!😊
Trading plan: BUY confirmation with a minimum potential profit of 250 pips.
Risk/Reward : 1:4
Potential Duration: 3 to 7days
NB: This speculation might be considered to make individual decisions on the lower timeframe.
Watch this space for updates as price action is been monitored.
Risk Disclaimer:
Margin trading in the foreign exchange market (including commodity trading, CFDs, stocks etc.) has a high risk and is not suitable for all investors. The content of this speculation (including all data) is organized and published by me for the sole purpose of education and assistance in making independent investment decisions. All information herein is for your reference only and I take no responsibility.
You are hereby advised to carefully consider your investment experience, financial situation, investment objective, risk tolerance level, and consult your independent financial adviser as to the suitability of your situation prior to making any investment.
I do not guarantee its accuracy and is not liable for any loss or damage which may result directly or indirectly from such content or the receipt of any instruction or notification therewith.
Past performance is not necessarily indicative of future results.
