POTENTIAL SHORT OPPORTUNITY USDCAD
Updated
Hello everybody hope you are doing awesome! Just wanted to come on here and give a potential swing trading opportunity I see on the US DOLLAR VS CANADIAN DOLLAR (USDCAD). So let's dive in!
Okay so let me give a breakdown for each timeframe of what I am seeing that led to my bias of the next potential move on USDCAD being to the downside for this upcoming week.
Weekly Timeframe
1. Price is overbought coming into a past supply/resistance zone. Price last week left a downside wick (hanging man) formation which I believe will be filled
2. There is a nice demand zone and bullish trendline lining up to the downside (ALSO fib retracement 78.6% confluence)
Daily Timeframe
1. Price is slowing down
2. Extreme bearish divergence on the daily timeframe
3. RSI is in overbought conditions (which you can see what has happened in the past)
4H Timeframe
1. Watching the buyer momentum making sure it isn't too strong (dominant)
2. Extreme bearish divergence as well
3. Watching for a run of weekly highs and maybe double divergence/run of highs
ALRIGHT! Hope that made sense! I definitely see a good amount of potential confluence here on this setup so let's see how price forms this week and see if it plays out to the downside!
If you enjoyed the analysis as always please boost this post and follow my page for more analysis! Cheers!
Okay so let me give a breakdown for each timeframe of what I am seeing that led to my bias of the next potential move on USDCAD being to the downside for this upcoming week.
Weekly Timeframe
1. Price is overbought coming into a past supply/resistance zone. Price last week left a downside wick (hanging man) formation which I believe will be filled
2. There is a nice demand zone and bullish trendline lining up to the downside (ALSO fib retracement 78.6% confluence)
Daily Timeframe
1. Price is slowing down
2. Extreme bearish divergence on the daily timeframe
3. RSI is in overbought conditions (which you can see what has happened in the past)
4H Timeframe
1. Watching the buyer momentum making sure it isn't too strong (dominant)
2. Extreme bearish divergence as well
3. Watching for a run of weekly highs and maybe double divergence/run of highs
ALRIGHT! Hope that made sense! I definitely see a good amount of potential confluence here on this setup so let's see how price forms this week and see if it plays out to the downside!
If you enjoyed the analysis as always please boost this post and follow my page for more analysis! Cheers!
Order cancelled
Buyers came in too strong to look for sells...cheers!
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