USD/CAD Analysis: Potential Reversal at Key Resistance
USD/CAD has been in a long-term uptrend, recently approaching a critical resistance zone. Price action suggests a potential shift from bullish to bearish due to the formation of a harmonic pattern that implies a possible corrective move. However, given the strength of the current uptrend, any pullback could be temporary, presenting future buying opportunities around key support levels.
Technical Indicators
TDI Divergence: Multiple bearish divergences on the TDI indicator highlight potential weakening in upward momentum, reinforcing the possibility of a short-term correction.
Moving Averages: The MAs are positively sloped, supporting the medium- to long-term uptrend, but price has moved significantly away from them, suggesting a higher probability of a near-term pullback.
Trade Strategy: Sell at Resistance
Entry: 1.391 zone
Stop Loss (SL): 1.4000
Take Profit (TP): 1.36970
Risk-Reward Ratio: 1:2.5
Rationale: The proximity to key resistance, combined with bearish divergences, supports a potential corrective move.
USD/CAD displays mixed signals of continuation and correction. Short-term indicators suggest a weakening, but the long-term uptrend remains intact. The most robust strategy here is a sell at resistance, backed by harmonic patterns and divergence signals. After a potential pullback, buying on corrections could be advantageous if the price resumes its uptrend. Monitoring technical developments and price action on lower timeframes is essential for timing entries.
Disclaimer: The information provided does not constitute investment advice.
Technical Indicators
TDI Divergence: Multiple bearish divergences on the TDI indicator highlight potential weakening in upward momentum, reinforcing the possibility of a short-term correction.
Moving Averages: The MAs are positively sloped, supporting the medium- to long-term uptrend, but price has moved significantly away from them, suggesting a higher probability of a near-term pullback.
Trade Strategy: Sell at Resistance
Entry: 1.391 zone
Stop Loss (SL): 1.4000
Take Profit (TP): 1.36970
Risk-Reward Ratio: 1:2.5
Rationale: The proximity to key resistance, combined with bearish divergences, supports a potential corrective move.
USD/CAD displays mixed signals of continuation and correction. Short-term indicators suggest a weakening, but the long-term uptrend remains intact. The most robust strategy here is a sell at resistance, backed by harmonic patterns and divergence signals. After a potential pullback, buying on corrections could be advantageous if the price resumes its uptrend. Monitoring technical developments and price action on lower timeframes is essential for timing entries.
Disclaimer: The information provided does not constitute investment advice.
Feragatname
Bilgiler ve yayınlar, TradingView tarafından sağlanan veya onaylanan finansal, yatırım, işlem veya diğer türden tavsiye veya tavsiyeler anlamına gelmez ve teşkil etmez. Kullanım Şartları'nda daha fazlasını okuyun.