Yesterday, we have posted USDCAD tactical trend vision once a daily close beyond is locked.
Today, we will post a pre-mature trading decision, based on further helpful technical demonstrations, why the hunt target would be 1.2610 and not 1.3030.
- CAD and Oil are like horse and carriage, even though sometime the link between them is broken. The strong correlation between rising in the price of oil and fallen USDCAD is back on stage. (USDCAD DOWN)
- Chart 4 hr shows head and shoulder pattern (reddish arcs) (USDCAD DOWN).
- The blue rectangle comes from the weekly chart. It is the size of one week, thus imagine it as one bar. The blue rectangle versus the green rectangle on the left mark a BEARSIH ENGULFING where price traded above the rectangle and ended the week trading and closing below it. (USDCAD DOWN).
- Last week, USDCAD retraced twice (double top, yellow rectangle) below the 76.4% fib line of the bearish engulfing pattern, without closing above 61.8% fib line. Failing to complete full retracement twice is another indicator for the south vision (USDCAD DOWN).
- On Friday, the market rallied. On Monday, the market retraced in full Monday’s rally and closed below Friday’s low. (USDCAD DOWN).
- Today, Europe’s session, 4hr market closed @1.2750 below the final upsloping TL (USDCAD DOWN).
- Combining the information of yesterday’s memo and today’s, one should follow through.
Take it or leave it!