USDCAD Short opportunity

16 ส.ค. 2021Higher timeframes are in a clear downtrend and 4 weeks ago the weekly chart offered a clean rejection off the 50 period EMA with a shooting star formation, hinting that the bearish trend may be resuming soon. Then price has been consolidating for a few weeks.

Now we have a clean 4H ascending channel and price seems to be rejecting an area of strong confluences, with horizontal resistance, as well as TL resistance, we find patterns within patterns, very good. A clean intraday rejection off this area, may trigger a move downwards in the direction of the main trend.

I have 3 potential targets for this move:
1. Recent lows at the lower bound of the ascending channel, price could still reject this level once more.
2. double bottom area: Price might reject previous 4H lows and create deeper structure, so we need to be ready for any indications of this happening.
3. Ideally I would like to hod this to the next 1.27 fib extension which is in the area of the daily 50EMA, which is also a strong area of S&R.


Feel free to like/follow if you agree or comment below and share your thoughts!
Looking forward to hearing different opinions!=)