Hi Traders! We have USDCAD sell structure forming at the moment. A detailed analysis of this bearish opportunity is as follows:
USDCAD D1 Chart:
On the daily chart the price is moving inside a bearish channel. This channel is formed by the highs and lows reaching parallel resistance and support zones. The price is respecting these two zones so far. The price which was moving higher has currently moved lower and has reached below the middle of this channel, we may now look for bearish setups with bearish evidences on lower timeframes in order to join the bears.
USDCAD H4 Chart:
On the H4 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 more evidences of bearish pressure on lower timeframes in order to join the bears.
USDCAD H1 Chart:
On the H1 chart we have a bearish divergence that has formed which we may consider as an evidence of bearish evidences. If the price moves lower and breaks below the low shown in the screenshot, it should open the bearish momentum.
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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