USDCAD right on our selling area, time to sell
Sell below 1.2582. Stop loss at 1.2702. Take profit at 1.2407.
Reason for the trading strategy (technically):
Price is now testing our major resistance area at 1.2582 (Fibonacci retracement, Fibonacci extension, impulsive Elliott wave structure, horizontal swing high resistance) and we expect a strong reaction from this level to drive price down to 1.2407 support (Fibonacci retracement, horizontal overlap support). It’s important to note the intermediate support level at 2.2458 (Fibonacci retracement, breakout level). We can also see a new element formed which is the bearish divergence on price vs RSI, this is always a good signal that a reversal is impending and on the horizon.
RSI (34) sees major resistance at 61% where we expect a corresponding reaction from. We can also see bearish divergence vs price signalling that a reversal is impending.
Reason for the trading strategy (technically):
Price is now testing our major resistance area at 1.2582 (Fibonacci retracement, Fibonacci extension, impulsive Elliott wave structure, horizontal swing high resistance) and we expect a strong reaction from this level to drive price down to 1.2407 support (Fibonacci retracement, horizontal overlap support). It’s important to note the intermediate support level at 2.2458 (Fibonacci retracement, breakout level). We can also see a new element formed which is the bearish divergence on price vs RSI, this is always a good signal that a reversal is impending and on the horizon.
RSI (34) sees major resistance at 61% where we expect a corresponding reaction from. We can also see bearish divergence vs price signalling that a reversal is impending.