The monthly timeframe indicative of the long-term trend shows a resilient and bullish US Dollar versus the Canadian Dollar. The target is the 1.54 price handle. This price handle is the supply that triggered the bearish momentum that created the low at 1-0.99 price handles. This bullish correction is caught in a consolidation between the demand and supply at 1.2 and 1.37 respectively. An impulsive move is signaling in the horizon.
On the weekly timeframe, we are cognizant of the unmitigated demand at 1.21 that could be a long-term profit target should the market create new long-term lows. On the Daily timeframe, we have a minor consolidation structure with a bearish imprint.
Once we have a confirmed break in structure and change of character (CHOCH), we anticipate a return to supply where we have a combination of liquidity and fresh unmitigated supply zones; 1.37 price handle. At this level we anticipate our sell orders to be triggered targeting the key daily structure below at the 1.30 price handle. Once price settles at this region;
- The price could rebound upwards.
- The price could slide further towards the unmitigated demand at 1.2 price handle.
We will update our outlook as the market gives us new information.
Our analysis is based on smart money concepts; supply and demand. We recommend this set up for swing and position traders.
Risk Warning: CFDs carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading may not be suitable for all investors, so please ensure that you fully understand the risks involved and seek independent advice if necessary.
Disclaimer: I am not a financial advisor and I am not telling you where or when to take a trade. I express my personal opinion only. Trading financial markets involve risk. I am not responsible for any losses incurred due to your trading. I do not recommend any specific trade or action, and any trades you decide to take are your own.