USDCAD | Perspective for the new week | Follow-up
The Bearish trend that began in October 2020 appears to have found a bottom @ around CA$1.24500 as the pattern transpose into what looks like an Inverse Head and Shoulder - a very strong reversal pattern.
My last publication on this pair still holds as I continue to look for Bullish expectations (see link below for reference purposes) following signs of positive expectations from the Greenback as the Non-Farm Payrolls report indicated that the U.S. economy added 379,000 jobs in February, a report that significantly exceeded analyst expectations.
Tendency: Uptrend ( Bullish )
Structure: Breakout | Supply & Demand | Reversal pattern (Inverse H & S)
Observation: i. Breakout of my Key level @ CA$1.26000 late February 2021 followed by multiple rejections of this level during last week trading session supports the expectation of a rally in the nearest future as the price remains supported at this level.
ii. After a significant Bearish Impulse leg, the appearance of an Inverse Head & Shoulder keeps my expectation LONG in the coming week(s).
iii. Bearish Leg that began Oct. 2020 falls to make a Shoulder and then rises to the Neckline(CA$1.27500); price then falls again and below the former Shoulder to make a Head and then rises again; finally, the price falls again but not as far as the second Shoulder with a good possibility of a Breakout/Retest expectation of Neckline @ CA$1.27500.
iv. Even as the CA$1.26000/1.25500 area remains a strong Demand area for me, a Breakout/Retest confirmation of Neckline might be a very good area you might want to join the rally.
Trading plan: BUY confirmation with a minimum potential profit of 350 pips.
Risk/Reward: 1:3.5
Potential Duration: 8 to 15days
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 foreign exchange trading, CFDs, 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.
My last publication on this pair still holds as I continue to look for Bullish expectations (see link below for reference purposes) following signs of positive expectations from the Greenback as the Non-Farm Payrolls report indicated that the U.S. economy added 379,000 jobs in February, a report that significantly exceeded analyst expectations.
Tendency: Uptrend ( Bullish )
Structure: Breakout | Supply & Demand | Reversal pattern (Inverse H & S)
Observation: i. Breakout of my Key level @ CA$1.26000 late February 2021 followed by multiple rejections of this level during last week trading session supports the expectation of a rally in the nearest future as the price remains supported at this level.
ii. After a significant Bearish Impulse leg, the appearance of an Inverse Head & Shoulder keeps my expectation LONG in the coming week(s).
iii. Bearish Leg that began Oct. 2020 falls to make a Shoulder and then rises to the Neckline(CA$1.27500); price then falls again and below the former Shoulder to make a Head and then rises again; finally, the price falls again but not as far as the second Shoulder with a good possibility of a Breakout/Retest expectation of Neckline @ CA$1.27500.
iv. Even as the CA$1.26000/1.25500 area remains a strong Demand area for me, a Breakout/Retest confirmation of Neckline might be a very good area you might want to join the rally.
Trading plan: BUY confirmation with a minimum potential profit of 350 pips.
Risk/Reward: 1:3.5
Potential Duration: 8 to 15days
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 foreign exchange trading, CFDs, 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.
Trade smart. Trade consciously
