During the last few week’s we’ve been watching the bearish price action pressure being applied to a critical support level on the USDCAD daily and weekly chart. Last week, a bearish breakout trap and reverse signal triggered short positions and drove the market lower. The week closed strong to the down side, closing below the previous swing low.
Now the market has broken it’s containment line and picked up momentum, we can actively look to short this market. We’re waiting for the market to correct back to the mean value and churn up a bearish candlestick reversal signal, one of the best forex signals, like a pin bar or outside bar. Hopefully the market will give us this opportunity to short during next week’s trading.