2020.12.22 USDCAD Analysis
2020.12.22 USDCAD ANALYSIS
This is a follow up to the 2020.12.10 USDCAD Analysis, you can read it here
where we anticipated a bounce from the light blue VWAP from the May 2012 low.
For reasons, unbeknownst to myself, I did not participate in this bounce.
As the chart below shows, the USDCAD found buyers at that level with a nice rebound in price.
I plotted the VWAP from the October 29 high and found confluence with the green 50 DMA.
Using both a Fibonacci retracement from the September high and the confluence of the yellow VWAP and the 50 DMA, I created a green rectangle area of interest for this price movement.
I will be looking for an opportunity for a short position in this green rectangle with the yellow trend line as another area of interest for an exit.
I am particularly interested in the 1.30046 price level for another short position.
The price seems to be forming a descending wedge pattern and is now testing the upper trend line.
Let’s see how this plays out.
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