as we can see here on the USD/CAD
chart that the market has been trending along the black trendline
and has been testing and bouncing off it for many times. as we can see right now the market has attempted to test the upside but didn't have enough strength so it can back down and has now tested the black trendline
, with no signs of the market breaking to lower areas, and is showing small tests happening by price and candles giving long wicks against the trendline
. also, this is happening all around the 0.5 fib level which is usually an important point to watch for turn arounds. due to this type of situation, we will be placing a buy for the market to be moving into upside areas to create new higher highs and higher lows to accommodate and follow the trend.