USD/CAD Analysis: Potential Reversal at Key Resistance

11월 5일

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.