First Of All i am looking at USDCAD top to down method, let’s see what USDCAD is showing us.
Seeing this clean monthly timeframe , we have to first identify major Support and Resistance zones (like the chart below) :
As we have identified our major Support and Resistance , we now have to zoom in and find current point being respected by the market :
looking at the above chart , we notice that USDCAD has been in an uptrend that it has been following for long, zooming in to ou are of value we tend to notice that red rectangle that show the suppot zone that had been previously respected as Resistance zone.
This is interesting part the market is currently within the support zone but we have to have a clear picture before a decision/prediction is made..
In the chart above we can identify the highlighted area in white rectangle, if we look closer we can see a Head n shoulders pattern that has already form and respected and whithin its neckline , CAD has formed a good support zone for us that worked as a resistance zone for us once.
Probably we looking forward for two chance here the a well respect of the resistance zone then a sell, or a break of resistance and what i am to show you in the chart below :
In the chart above we can easily notice Lower Lows and Lower Highs forming making a well respected down trend indicated with the white like. so here we will possibly looking to go long at the : 1) The Break Of The down Trend Line 2) Break of the Resistance like that has acted as neckline.
Have a great trading week, hope you will make a good decision, you can as well place a comment below to share your thoughts.