Currently the price is in a Support/Resistance zone (orange). This zone is respected in:
- November 2016
- December 2016
- March 2017
The S/R zone was exceeded once and reached the major resistance zone (red). It happened in the months of April and May.
Because the price has increased considerably in the last days, I expect that a retracement will arise.
There is also currently a fundamental panic around the American economy:
- President Trump wants the resignation of FED chairman Jerome Powell.
- Dow Jones has made a 7% decline last week. This was the worst week of the past 10 years.
I believe this will have an impact in the USD currency.
This in combination with the orange S/R zone is a good trading opportunity to make a profit.
There are 2 possible situations: The first is that the price rises above the S/R zone because the dismissal has no major impact on the American economy. The second is that price drops so bad that the trend line breaks and a reversal trend arises.
We will have to wait for Sunday evening to see the result. I expect a short gap at the opening of the market through this weekend news.
تم فتح الصفقة:
The price of the USDCAD broke the trendline. We will now wait for a pullback of the price. If this appears we will take a short position with a top target price (TP) of 1.33250