USDCAD Watch top for short

3 days ago

This is a 4-hour (4H) chart of USD/CAD (U.S. Dollar / Canadian Dollar), showing a technical setup with Fibonacci retracement levels, a trendline structure, and a sell signal.

Key Elements of the Chart:
Fibonacci Retracement Levels:

The chart has Fibonacci retracement levels drawn from a previous high to low move, indicating potential resistance levels.
The 38.2% retracement level (1.4245 - 1.4240) is highlighted as a key resistance zone.
Trendline & Potential Break:

A yellow trendline is showing an ascending trend in recent price action.
Price is currently testing this trendline, indicating a possible breakdown.
Sell Signal & Resistance Zone:

The chart includes a "Watch top for sell" label at 1.4245, suggesting traders are monitoring this area for potential short (sell) positions.
Price is rejecting the 38.2% Fibonacci level, confirming selling pressure.
Bearish Targets:

First target: Around 1.4200, which aligns with the 23.6% Fibonacci level.
Second target: Around 1.4151, which is the 0% Fibonacci level.
Extended Target: Below 1.4090, based on additional projections.
Trading Implications:
Bearish Bias: If price remains below 1.4245, selling momentum could increase.
Confirmation Needed: A clear break below the trendline would strengthen the bearish outlook.
Potential Resistance: If price retests 1.4245 - 1.4250, it could offer an entry for short trades.

3 days ago

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