USDCAD has reached a critical trendline resistance zone and a historic resistance level, setting up a potentially lucrative short trade after completing an ABC pattern and forming a bullish flag.
Strong trendline resistance zone: USDCAD has reached a major trendline resistance zone that has been respected multiple times in the past. The price has consistently reversed from this zone, giving us confidence in the potential for a bearish reversal this time around as well.
Historic resistance level: In addition to the trendline resistance, the price is also respecting a historic resistance level that has acted as a barrier for further bullish momentum on numerous occasions in the past.
ABC pattern completion: The recent price action has formed a clear ABC pattern. The completion of this pattern at the trendline resistance zone strengthens the probability of a bearish reversal.
Bullish flag formation: The price has recently formed a bullish flag pattern, which has shot the price up to the current liquidity zone. This further supports the idea that the market has reached an area where sellers may regain control.
As always, ensure proper risk management by only risking 1-2% of your account on any single trade, happy trading!
Strong trendline resistance zone: USDCAD has reached a major trendline resistance zone that has been respected multiple times in the past. The price has consistently reversed from this zone, giving us confidence in the potential for a bearish reversal this time around as well.
Historic resistance level: In addition to the trendline resistance, the price is also respecting a historic resistance level that has acted as a barrier for further bullish momentum on numerous occasions in the past.
ABC pattern completion: The recent price action has formed a clear ABC pattern. The completion of this pattern at the trendline resistance zone strengthens the probability of a bearish reversal.
Bullish flag formation: The price has recently formed a bullish flag pattern, which has shot the price up to the current liquidity zone. This further supports the idea that the market has reached an area where sellers may regain control.
As always, ensure proper risk management by only risking 1-2% of your account on any single trade, happy trading!