I have seen many things in my time but this bearish trend is beyond ridiculous, at some point price will need to spike up to fill some of the missing gaps in the trend.
I would expect a continued bearish lure to start the week before we push up impulsively to my levels marked.
We had a huge run on stops yesterday using the market exucse of the Johnson & Johnson issue. This has now set the tone for the rest of the trading week. USDCAD should collapse after retracing slightly to collect orders.
USD CAD is only going down to me, both through technical and fundamental reasons.
Technical you can see that 1.26 is a key level and is a nice round number, you can also see marked out by my yellow boxes where price has touched and respected this level, so when it touched it bounced!
Fundamental, The economy is f@cked and the amount of money the US are printing...
This has retraced nicely to the point I marked out in my previous analysis for the pair. This is a good shorting entry to the target of 1.22500 with SL just above the resistance level. MACD is still below 0 so that signifies this is still bearish and EMA's are very close to crossing but I expect this to drop from here.
This has broken below a support, it now offers a chance to short this further but we need to see a retrace first for an opportunity to enter the trade. A retrace to at least 0.382 Fibonacci is required, then if and when it rebounds the short can be entered with a target of 1.22500 with SL just above the support level.
We are caught in an ugly range on this pair, we are currently trading at a key supportive region which is most likely going to be stop hunted.
I would like to see a push below support into the liquidity pool marked before rejections to the upside.
We need to monitor the DXY constantly to see whether or not this move will be valid next week.
This has moved beyond the upper trend line but looks like it has reached its peak which is a lower high. Now expect this to drop and possibly create a lower low, but to be on the safer side TP can be at the previous low. SL just above the previous high of 1.27994
1.29500 is a key strong level that has been respected as both support and resistance before as marked on the chart by my purple arrows, price has hit this level and bounced numerous times making it a very strong level.
Now as this level is 200 pips away i am selling down to this area where i will look at taking BUY trades, So bears should push price down to this...