USDCAD dropping perfectly, watch for the break of key support
Sell below 1.2490. Stop loss at 1.2561. Take profit at 1.2270.
Reason for the trading strategy (technically):
Price has dropped perfectly from our selling area and is now testing major support at 1.2490 (Fibonacci retracement, horizontal overlap support). We would only sell if price drops and closes below this major level. If it does, then the momentum should push price down to at least 1.2382 support before 1.2270 (Fibonacci extension, horizontal swing low support).
Stochastic (89,5,3) is seeing a nice reversal from 97% with good downside potential.
Reason for the trading strategy (technically):
Price has dropped perfectly from our selling area and is now testing major support at 1.2490 (Fibonacci retracement, horizontal overlap support). We would only sell if price drops and closes below this major level. If it does, then the momentum should push price down to at least 1.2382 support before 1.2270 (Fibonacci extension, horizontal swing low support).
Stochastic (89,5,3) is seeing a nice reversal from 97% with good downside potential.