[Market Breakdown 2] USDCAD

Jan 31, 2021

MONTHLY

We are interested in a Long set-up on USDCAD as we have received a -27 Fib completion.
Also very nice Supply & Demand zone acting as support.
We have formed the Shoulder 2 of a big Head & Shoulders pattern.
We have an Ascending trend line to 'protect' our price.

Jan 31, 2021

Note

DAILY

On the Daily chart, we were making LLs and LHs.
We broke the downtrend impulsively and we have received a Reversal Pattern in the form of an Inverse Head & Shoulders.
After the Inverse Head & Shoulders we want the market to form a continuation pattern.
It seems like we are forming a 'Bullish M' pattern now.
Our region of interest is sitting at a clear Daily Supply & Demand zone (61.80 Fib level).
We need some more confirmations on the 4H chart.

Jan 31, 2021

Note

4H

On the 4H chart the 'Bullish M' pattern is more clear.
We have an Institutional Candle holding up our price.
We have an Ascending trend line holding up our price.
For me, all the criteria is there for a Long position.

New month tomorrow so of course also new Monthly candle.
Some unexpected things can happen, be aware.

Remain neutral and anticipate on the situation.