USDCAD – New Trend or Just Correction?
U.S. Dollar/Canadian Dollar FX:USDCAD
The price broke the main uptrend line, and it could be a signal telling us about a trend reversal. But the price found the support at SMA with period 200, and we got a price reversal. Such patterns we could see in the past and the market continued the uptrend after them. How will it be this time? We will see, and the price action at the key levels will provide us a better understanding in which direction the market will move.
For confirmation an upward movement in the direction of the main trend, the price will have to break 1.33000 resistance and move back above the trend line . The upward movement is supported by MACD histogram and RSI .
For confirmation of the trend reversal, the price will have to bounce from the resistance zone formed by the uptrend line and 1.33000 level. An additional signal supporting a downward movement will come with a breakout below the local swing low and 1.32000 support level . DMI and MACD lines support the downward movement.
Based on these signals in the key zones, it will be possible to open long or short trades based on different timeframes.
Source: TW DLavrov