USDCAD: Structural Trade with Fib Clusters

Identify:

• Price Action has bounced off a trend line 3 times.
  
• Price Action making new structure lows (Bearish Bias)
  
• There is a fib cluster that matches the structural zone shown in red where the high and low of the zone are based off structural levels and the fib retracement levels.
  
• Another fib cluster for potential targets found between 1.294 and 1.298
  
• Bullish RSI Divergence
  

Predict:

• Price Action may rise to the zone between 1.313 and 1.315 — satisfies a short-term bullish move
  
• Upon reaching the “reversal zone”, the pair may continue down and break structural lows and continue down to the blue target zone.
  
• If price action continues, then we may be looking at a possible bat pattern forming… although too early to tell.
  

Comment:

so far so good. Price action did go beyond the trendline, but quickly came back down and is back at support around 1.305