USDCAD on Tradingview

29 Nis 2020At this point, price action is testing a big zone of prior support on the chart: Not only did this area hold multiple inflections over the past couple of weeks, but there are three different support/resistance mechanisms within a 20-pip range. The price of 1.3992 is the 50% marker of that March major move; and at 1.4000 psychological level sits just beneath the 1.4012 Fibonacci level which is the 38.2% retracement of the 2020 major move. Given a recent lower-low, combined with a test of resistance around prior support to go along with a potential lower-high, short side scenarios may be an attractive way of moving forward. The big question is whether the technical setup is too clean for comfort, and whether a bear trap may be brewing here on the hourly chart below.