Weak Corrective Pullback Hints at Continued Downside
Since late January, USDCAD has seen a significant counter-trend move to the downside after a sizable bullish run. On it's way down, price briefly found support at the 1.3390 handle (the first blue box) before breaking through it shortly after. After breaking through to the downside, this level got retested twice (the next 2 blue boxes) and met significant selling pressure which had formed a new low. Since then, we have seen a bullish corrective move slowly drifting back toward that major level.
This recent strong impulsive bearish move and the lack of any real buying pressure hints at another potential bearish continuation. An ideal place to sell weak corrective moves is the 1.3390 handle. However, given the significance of this level, if volatility increases and this level is broken, this would also be a solid level to buy on retests.
And be cautious of spikes in volatility around NFP.
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Nazar.
This recent strong impulsive bearish move and the lack of any real buying pressure hints at another potential bearish continuation. An ideal place to sell weak corrective moves is the 1.3390 handle. However, given the significance of this level, if volatility increases and this level is broken, this would also be a solid level to buy on retests.
And be cautious of spikes in volatility around NFP.
If you agree with this analysis, hit the thumbs up.
If you want more content like this, follow me.
Message me with any questions you have or comment.
Happy Trading,
Nazar.