After breaking the ascending triangle we began to see bearish momentum but that soon slowed down and now it looks like the price has failed to continue the downside and we are in the process of a structural shift indicating a potential buying opportunity.
COT DATA - 55% Short
- Strong bullish candle on the daily, with a break
of the 50MA
- Break of descending trendline on the 4HR
- Looking for pullback to 0.382, ideally further down to the 0.618, lines up nicely with the MAs on the 1HR and 4HR
Closed above the most recent support area and 50EMA.
If next candle opens above the support, will be looking for a short term buy up to the next resistance, with a nice small stop below the most recent low.
Looking into the weekly chart we can see that there is a strong overall down trend for this pair. As we come into our lower time frames the Daily/ 4hr we have a smaller bullish trend taking place inside of the overall trend. Do too fundamentals which took places yesterday we had a strong down movement in this pair which has bought us back too the bullish trend...
+ Daily Trendline broken
+ Good Bullish Momentum
+ Fundamental strong CAD
+ Waiting for a Break and Retest Scenario
CAD Interest Rate Decision, not the best for SwingTrading, if we hold rates we can see really good momentum to the Upside!
Risk to Reward: 1:2,25