USDCAD - Rejection from 1.31 Psych Level with S/R Zone Retest
US/Canadian dollar observed on daily timeframe.
Wednesday's daily closure illustrates a clear rejection of the 1.31 psychological level. By observing higher timeframes we can see this zone is a significant area of multiple price rejections.
Now price has managed to break the zone and complete the retest I am looking to enter a short position on the pair following a strong confirmation candle to the downside. As annotated on my chart we also have a bearish break of triangle giving further indication of where price is likely heading.
We can look to sell to 1.29250 area
Stop loss to be placed around 1.31100 giving good R:R ratio of nearly 1:3
Wednesday's daily closure illustrates a clear rejection of the 1.31 psychological level. By observing higher timeframes we can see this zone is a significant area of multiple price rejections.
Now price has managed to break the zone and complete the retest I am looking to enter a short position on the pair following a strong confirmation candle to the downside. As annotated on my chart we also have a bearish break of triangle giving further indication of where price is likely heading.
We can look to sell to 1.29250 area
Stop loss to be placed around 1.31100 giving good R:R ratio of nearly 1:3