Evening Traders,
Today’s analysis – USDCAD – price approaching key Daily S/R where a bearish retest is probable,
Points to consider,
- Bearish Market Structure
- Range-Mid (Support)
- Daily S/R Resistance (.618& 200DMA confluence)
- Oscillators extending
USDCAD’s Market Structure is bearish with consecutive lower lows and lower highs, this allows for a bearish bias on the market.
Range-mid is the immediate support, price holding this level will establish a local higher low.
The Daily S/R is current resistance approaching, rejection here is plausible due to technical confluence with the .618 Fibonacci and 200 DMA.
Both oscillators are getting overextended, this is indicative of a reversion to their mean which will coincide with price action.
Overall, in my opinion, USDCAD is a valid short with defined risk; Price Action is to be used upon discretion/ management of trade.
Hope this analysis helps
Thank you for following my work!
And remember,
“Dangers of watching every tick are twofold: overtrading and increased chances of prematurely liquidating good positions” – Jack Schwager