USDCAD: Price Loosing Momentum. Consolidation Ahead ?
Since MAY 2021, the greenback has been appreciating against the CAD and various other currencies! The FED signaling BOND tapering at a faster rate and 2-3 hikes already priced in for 2022, the USD is resilient as for now. With the price of USDCAD approaching 1.3000 resistance barrier, the RSI has been generating a loose in price momentum evident by the bearish divergence.
To trade this opportunity with caution and confirmation, we need the D candle to break the ascending trendline and 1.27600 level (candle must close below 1.27600). The take profit target would be at 1.26400 and the ideal stop loss should be placed above the swing high. A 1:1 risk to reward is needed to trade this opportunity, so the entry should be adjusted based on all these parameters.
Cheers, I hope you found this insight helpful.
To trade this opportunity with caution and confirmation, we need the D candle to break the ascending trendline and 1.27600 level (candle must close below 1.27600). The take profit target would be at 1.26400 and the ideal stop loss should be placed above the swing high. A 1:1 risk to reward is needed to trade this opportunity, so the entry should be adjusted based on all these parameters.
Cheers, I hope you found this insight helpful.
