The US dollar looks like finally created a short-term top against the Canadian Dollar. There is a nice toppish pattern forming on the daily chart of the USDCAD pair, and there is also a divergence formed. All signaling a short-term top in the USDCAD pair.
We can look for a sell opportunity from the current or a bit lower levels, and wait for a correction in two waves on the 4-hours chart to enter a sell trade with a divergence.
Technical Analysis
D1– Daily chart highlighting a short-term top pattern.
Sell Entry:
H4 – If USDCAD pair trades in two waves higher from the current or a bit lower levels, forms a divergence or breaks any bullish trend line formed on the 4-hours chart, then we can look to enter a sell trade as shown in the chart.
Target 1: 1.4250
Target 2: 1.4150
Stop Loss: Above the last high created or 1.4650.
Video Explanation:
Yours,
Vladimir
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