The Canadian Dollar update.
Good afternoon Forex Traders,
Todays post is of the CAD last posted on the 11th March.
As said then price was at former S/R and although has broken through since then for a small amount, is now retesting it.
As it is in a good downtrend barring the recent consolidation, many people may think a continuation is now on the cards, and it could well be, but on closer inspection this may not be a high probability trade just yet.
All I intend to do is offer a word of warning here as a former trendline from 02 and a fibonacci point of the most recent downward move and the significant '0000' are just below which could halt price should it head that way.
With only a couple of hundred pips available before this area and with the likelyhood of at least some form of significant support, if not the chance of even a reversal, this does not give a good RR opportunity, and rolled into the mix is the MACD convergence.
However after doing your own analysis you may wish to take this trade if you are of an aggressive stance and who knows, it may well go straight through that area !
Charts courtesy of AdvancedGet.
Whatever you trade, good luck.