USDCAD Overshoot of Daily Channel, Possible Bearish Week Ahead
We had a bull channel on daily chart which price now breaks above channel line.
Usually overshoot of channel lines rejected within 5 bars and reversed down to the channel again.
So context is showing us a possible bear trend on daily chart, now lets check the H4 timeframe.
We had 2 legs up and climatic behavior, climatic behaviors cause fast reversal or trading range.
If price moves down, on H4 timeframe breakout point have to be watched. Break below that breakout point shows bears strength.
As long as we are above prior low on H4, probability for bull trend resumption is higher.
We need to see selling pressure and series of LHs and LLs to confirm bear trend.
Usually overshoot of channel lines rejected within 5 bars and reversed down to the channel again.
So context is showing us a possible bear trend on daily chart, now lets check the H4 timeframe.
We had 2 legs up and climatic behavior, climatic behaviors cause fast reversal or trading range.
If price moves down, on H4 timeframe breakout point have to be watched. Break below that breakout point shows bears strength.
As long as we are above prior low on H4, probability for bull trend resumption is higher.
We need to see selling pressure and series of LHs and LLs to confirm bear trend.