USDCAD - Expecting a Consolidation - Another Trendline Bounce

Hi Traders!
The market is in a Downtrend.

As always, let's begin with the daily Timeframe:

You can see a descending Wedge (with one bearish Fake out).
Consider the distance between the Trendlines: It is getting tighter and tighter.
Because the market has fallen very much and reached now an Area of neutrality, we expect a consilidation now.

Let's move on to the next Timeframe:

The price is now at the lower Trendline.
It is bouncing back from upwards it to reach the other side.
Because the market is in a Downtrend, we don't recommend to trade the Upmovement towards the upper Trendline.
We will trade the bearish Bounce from the Trendline.

Let's move to the Entry Timeframe:

Here we see an orange box.
We call it the "Area of Concentration".
We're here waiting for a Trend Reversal Pattern.
This could be the Engulfing Pattern, a Doji-Pattern, etc.

We recommend to trade the pair patiently, because it is a Longterm-Analysis.


Thanks and successful Trading :)!

Commentaire:

Here is the RED BOX, but in Big: