USDCAD - Relief Bounce Incoming?
Quick Update on the USDCAD Pair:
Things are progressing according to plan. As noted in the previous post, the pair turned bearish following a strong rejection at the multi-month resistance area.
What’s New?
The daily downtrend has just expired. We could see a relief bounce towards the mid-range level of 1.35623 before a potential continuation to the downside.
Consider taking profits from the current short setup, as there is a risk of price stalling or bouncing back to the entry level.
Weekly View:
The weekly timeframe provides a clearer perspective with less market noise. Two swing lows are still below, and as long as they remain intact, I anticipate further downward movement. With the price now below the mid-range, the likelihood of testing the low of the range, or coming close to it, has increased.
The key level to watch is 1.33, which I believe will act as a price magnet before any bullish signals emerge on the chart.
Actions to take:
For now, you can either re-short on a retest of 1.35623 (if it happens) or wait for an entry into the gray area.
Plan B from the previous post remains active, but I won’t turn bullish until we see a trend reversal above the mid-level. If a deviation occurs, follow the steps previously outlined.
