USD/CAD – 1H – SELLThe combination US Dollar/Canadian Dollar (USD/CAD) jumps from the descending trendline down.
A continuation of the downtrend downwards to the next support level at 1.39572 is expected.
Caution: A possible reversal of the trend in the direction of the resistance zone at 1.39779 should be noted.
In case of a trade, appropriate stop-loss settings should be considered.
Next a ‘Bearish Engulfing’ candle chart pattern is detected. The chart forms ‘Bearish Engulfing’. which is a negative signal. The currency pair is likely to fall. According to the Encyclopedia of Candlestick Charts by Thomas N. Bulkowski, the success rate of a ‘Bearish Engulfing’ going down is 79%.
| Support & Resistance | Price Range* |
|---|---|
| 3rd High | 1.40363 |
| 2nd High | 1.40142 |
| Next High | 1.39779 |
| Current Price | 1.39762 |
| Next Low | 1.39572 |
| 2nd Low | 1.39308 |
| 3rd Low | 1.39304 |
Trading Signals: FOREX – USD – USD/CAD – CAD – Bearish Engulfing