Hi guys,
lately CAD pairs have been very weak, on this particular pair we can see price is testing a key support area that was relevant on the daily timeframe (left-hand side). This means it could still be effective for price's movements and we can then search for long opportunities down on lower timeframes, such as 4hr. In addition to that you can see the RSI is in oversold condition, both in the daily and in 4hr charts. As we go down on the 4hr timeframe there's a huge pin signaling buying pressure at this precise level. Now, this doesn't mean we can now long but it could represent an early stage of a reversal pattern, that could be confirmed by the next candles.
I'll keep you updated in case of an entry.
If you have questions or if you want to share your ideas, feel free to comment below.
Otherwise, see you in the next chart!
lately CAD pairs have been very weak, on this particular pair we can see price is testing a key support area that was relevant on the daily timeframe (left-hand side). This means it could still be effective for price's movements and we can then search for long opportunities down on lower timeframes, such as 4hr. In addition to that you can see the RSI is in oversold condition, both in the daily and in 4hr charts. As we go down on the 4hr timeframe there's a huge pin signaling buying pressure at this precise level. Now, this doesn't mean we can now long but it could represent an early stage of a reversal pattern, that could be confirmed by the next candles.
I'll keep you updated in case of an entry.
If you have questions or if you want to share your ideas, feel free to comment below.
Otherwise, see you in the next chart!