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USD/CAD: Sellers waiting for a bearish breakout

EagleFX

USD/CAD has been bearish on the daily chart. Yesterday’s candle came out as an Inverted Hammer. The H1 chart shows that the price gets caught within two horizontal levels. The level of support produced a bearish inside bar and created bearish momentum. A breakout below yesterday’s lowest low may create more bearish momentum. The sellers may go short below the level of 1.34850.

Chart 1 USD/CAD H1 Chart


The price gets caught within 1.34850-1.35305. The level of 1.35305 has already produced a bearish inside bar followed by another bearish candle. The next candle came out as a bullish candle, though. As of writing, the last candle seems to a bit bearish. If the price heads towards the South and makes a breakout at the level of 1.34850, the sellers may trigger a short entry. The daily and the H4 chart shows that the price has enough space to go towards the South. This may attract more sellers, and it may bring more liquidity.

Trade Summary

Entry: Sell below 1.34850
Stop Loss: Above 1.35305
Take Profit 1: 1.34450
Take Profit 2: 1.34450
Take Profit 3: 1.34240

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