Psychological of Market :
Downtrend started in June 2017 ( around 1.3500 ) was breaking the monthly support of April 2017 ( around 1.3200 ).
In the past weeks, this pairs reach its potential buying reversal started in February 2018, reaching 1.3200.
Recent Price Action :
The buyers certainly had gotten very massive profit since February 2018 assuming they are buying USD over CAD around 1.2300
Judging the reaction of price at around 1.3200 - monthly support of April 2017 , we are assuming, no more buyers likely to hold their interest, at least for the moment.
It shows buying weaknesses which leads to potential selling (which hopefully the institution that filled this orders).
Reaction :
Hold sell, while carefully watch the price action in the next 2 weeks.
Certainly the area of around 1.3000 was the last barrier for the big participant to hold its game (assuming price keep moving downward).
Because if only price hit the level, it might provide the unknown chance : reversal or continuation.
Downtrend started in June 2017 ( around 1.3500 ) was breaking the monthly support of April 2017 ( around 1.3200 ).
In the past weeks, this pairs reach its potential buying reversal started in February 2018, reaching 1.3200.
Recent Price Action :
The buyers certainly had gotten very massive profit since February 2018 assuming they are buying USD over CAD around 1.2300
Judging the reaction of price at around 1.3200 - monthly support of April 2017 , we are assuming, no more buyers likely to hold their interest, at least for the moment.
It shows buying weaknesses which leads to potential selling (which hopefully the institution that filled this orders).
Reaction :
Hold sell, while carefully watch the price action in the next 2 weeks.
Certainly the area of around 1.3000 was the last barrier for the big participant to hold its game (assuming price keep moving downward).
Because if only price hit the level, it might provide the unknown chance : reversal or continuation.
Meaning, the top barrier of balance (highest high in the past 2 months) clearly shows us highest resistance is blown up already.
Compare to failure of creating lower high & lower low, there is any possibility that last downtred merely just retracement or "the discount" to trigger Buyers pour in capital into the market / Absorbed all the smaller Sellers