By Admiral Markets
As we could see on the previous Session Recap webinar, USDCAD behaved exactly as planned giving us more than 150+ potential pips on a shorting scenario. Recent jump in oil prices by 3 % suggested another drop in USDCAD (remember the correlation – OIL up = CAD up = USDCAD down).
Technically we can see lower highs and lower lows with a descending trend line that is holding the price from further rallies. Additionally, an inner trend line is making an X cross ™ with H4 further confirming the bearish outlook. We have 2 POCs for possible positional short trades, with continuation and breakout setup.
POC comes within 1.2865-1.2880 zone (H3,DPP, trend line) while POC2 comes within 1.2900-1.2915 zone (X cross ™, H4, EMA89). based on historical vs now moment concept and POCs we could expect sellers there.
However if the price doesn’t pull back towards POC a strong momentum break below 1.2820 or 1h close below it, will aim for 1.2788 and 1.2738-30 subsequently.
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Article by Admiral Markets
Source: USDCAD downtrend still intact
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