- October 19, 2022
- Posted by: Tradingshot Articles
- Category: Forex
The USDCAD pair has been following for a very long time our 1W trading pattern and as per our trading plan on November 01 2021, it reached our 1.36000 target for 2022 already:
As you see the projection couldn’t have been better and this approach is a great way for long-term investors to benefit with relatively low risk. Currently however we shift our focus on the medium-term and the 1D time-frame where the pair has a Bearish Divergence according to its 1D RSI. As shown while the price action has been on Higher Highs, the RSI is on Lower Highs.
The last two times this Bearish Divergence emerged, the price hit both the 1D MA50 (blue trend-line) and the 1D MA200 (orange trend-line) with ease and even dipped below the 0.618 Fibonacci retracement level. Our medium-term target before this year is out is the 1D MA50 itself. Traders who want to pursue more risk, can target the 1D MA200, whose fair projection by December should be slightly above the 0.786 Fib.