Here I explain all the reasons why I think we could see another push to the downside for USDCAD and why we could see possibly new lows for this pair at 1.26000.
Leave a comment if you agree, disagree or have any questions :)
Elections are finally over and BIDEN has been choosen.
There are still further chances of Declining.
If we want further decline then
Price must do some corrections.
Techincally MA are in support,
Demand zone breached.
Weekly,Daily rejection zone seems
to be holding.
If broken below 1.305, then FREEFALL
will took place.
Key area for USDCAD here @ 1.3050-60 area as we have bounced off the key 92.48 support in DXY index. Provided that the level holds, we should see a bounce off these lows in USDCAD and a rally towards the 1.3137 fibbo resistance or even towards the 1.3190 level.
From a risk reward point of view, dollar looks oversold here with an RSI around 28 reflecting a turn in...
- Bullish Hammer on 1H
- Rejecting lower demand zone @ 1.31000
- RSI putting upwards
- Bounce from 1.0 fib level
I don't normally incorporate RSI indicator into my strategy, as I have never found it that reliable. I will be testing it out against results and see if I can make any improvements.
- Currently in a downtrend, nearing a strong, reliable and longer term demand zone -
this suggests a high possibility of a bounce and a move to the upside.
- Many indecision candles on the lower time frames, with some heavy bullish momentum.
- Currently creating a HIGHER LOW
- Price looks exhausted and bullish candlesticks are forming, which indicates to me