Hi Traders! USDCAD critical zone provides bearish opportunity for us. A detailed analysis of this sell setup is as follows:
USDCAD W1 Chart:
On the weekly chart the price was moving inside a bullish channel. This channel is formed by the highs and lows reaching parallel resistance and support zones. The price which was respecting these two zones so far has broken below the bottom of this channel. We may consider this as an evidence of bearish pressure. Currently it looks like a pullback is happening, we may now look for evidences of bearish pressure on lower timeframes in order to join the bears.
USDCAD D1 Chart:
On the daily chart we have a hidden bearish divergence that has formed which we may consider as an evidence of bearish pressure. We may now look for bearish setups with bearish evidences on lower timeframes in order to start looking for the sells.
USDCAD H4 Chart:
On the H4 chart the price has reached a critical zone formed by the fibo levels of the cycles, bottom of the weekly channel and the top of the H4 channel. In addition to this we also have a bearish divergence that has formed which we may consider as an evidence of bearish pressure. We may now look for more bearish evidences in order to start looking for the sells.
Note: It is always recommended to look for confirmations before you jump into any trade. If you are not sure about how to trade this sell setup then you can use any setup and strategy that you have in your arsenal to look for bearish moves and join this sell trade.
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