From my previous posting two weeks ago, I mentioned about two types of trades: Impatience and the patience traders. USDCAD has hit the level I mentioned and moved about 400 pips up and thus breaking out of the triangle formation. So if you are a patience trader you have gotten yourself a neat 400 pips!
Last week, which is week 34, USDCAD has tried to move up of 1.0665 zone (which is also May & June High), thrice before plunging down. Can we assume that this is a temporary halt before a continuation of its upward movement or has it decide to dive nose down?
Going to Week 35, the green zone which is the potential support zone would be an area to look out for the bulls to join in. This is also a prior support turn resistance zone.
However, the bears might have the strength to push price down further to the 1.0350 (pink line) another strong support zone.
Should price decide to try and test week 34 high (blue line) again but failed to close above, then we could look forward to go short, with a reversal pattern in a lower timeframe.
Tflow® students, please look out for Tflow® pattern and trigger. You might just set yourself another 400 pips!
To find out more, you can join our free forex seminar where we are going to showcase Tflow®.
