Duo-Reversal Patterns Show USDCAD Rally "Hanging By A Thread"

12 בינו׳

Price has rallied quite a bit for USDCAD since its last visit of the Rising Support @ 1.34189 and we currently see Price showing quite a bit of exhaustion at the March 2020 Highs @ 1.44664!

This exhaustion comes in two Reversal Patterns:
Advance Block - 3 Candlestick Reversal Pattern
+ (Bearish Confirmation Candle)
Hanging Man - Single Doji Reversal Candlestick Pattern

Both these Reversal Candlestick Patterns and RSI in Oversold territory, spell possible trouble for Bulls in which signaling Bears could potentially overcome and Push Price Down!

This suspected drop in Price could be a Retracement to Previous Structure of Past Resistance @ (1.39775 - 1.38784 ) which happens to land right in the 50% - Golden Ratio Fibonacci Zone.

Fundamentally, USD and CAD both last week showed flying colors when it came to their Employment and Unemployment Results both showing an Increase in Work and Lowering in Jobless. This week will be news heavy for USD with:
Core PPI/PPI - Tuesday
Core CPI/CPI - Wednesday
Core Retail Sales/Retail Sales/ Unemployment Claims - Thursday

If overall week results are negative, we could see USD lose all strength and CAD take the stage!

13 בינו׳

הערה

Scenario #1 - Bearish

Price is still traveling through the Consolidation between Resistance @ ( 1.44664 - 1.44488 ) and Support @ ( 1.43308 - 1.42788 )

If Bears are able to bring Price Below the Support of Consolidation, there may be a Put Opportunity to take Price Below Support to the Target Range of ( 1.40 - 1.39 )

*If USD is able to have a good News Week, we could see it continue gaining strength and push up and Above the Resistance trying this into a Bullish Scenario!

Stay Vigilant

14 בינו׳

הערה

USD News Results!

Core PPI m/m
Actual - 0% / Forecast - .2% / Previous - .2%
(-0.2% Decrease)

PPI m/m
Actual - .2% / Forecast - .4% / Previous - .4%
(-0.2% Decrease)

27 בינו׳

הערה

Potential Head and Shoulders Pattern forming to start the week!!

Price here on the 30 Min is showing a strong reversal formation with the Confirmation of Pattern @ 1.43648.
-Once price Breaks below and Close = Pattern Validated!

This could be a sign of what the markets are thinking will happen with both the FED and BOC getting for the Interest Rate Meetings on Wednesday Jan. 29th. Be Vigilant!

27 בינו׳

עסקה פעילה

Entered Aggressive Put Positions on the formation of the "Right Shoulder" of the suspected Head & Shoulders Pattern forming.
- Put Entry @ 1.4385
- SL @ 1.4405

Will add more Conservative Entries to my position once Price Validates the potential pattern by Breaking and Closing below the Confirmation.

27 בינו׳

העסקה בוטלה באופן ידני

Closing Put Positions taking small profit to Reevaluate price action on USDCAD

Fears of Trumps Tariffs being brought back into play could play a crucial part in the relationship between USD and CAD.