- USD/CAD stalls at a well-telegraped resistance area.
- There are few, if any, prospects of a high probability setup from a swing-trading point of view.
- Day-traders will take note of the potential for sideways channel trading opportunities between resistance and support.
Unfortunately, this makes for treacherous swing-trading opportunities.
However, there could be potential on the day-trading side.
The following illustrates the price action and developments to date in a continuation of the following analysis that had predicted the upside breakout to where the market is now resisted:
There is more to go to the upside until a 38.2% Fibonacci retracement and resistance structure.
However, there will be shorter-term opportunities on the downside at this juncture first.
The price has reached a 61.8% Fibonacci that meets structure.
This makes for a compelling case for a pullback to at least a 38.2% Fibonacci retracement level.
However, the price is now trapped between weekly resistance and daily support.
This leaves little to no prospect of a high probability and protected setup in either direction from a swing trading perspective. at least not one that will offer a favourable risk to reward from a 4-hour time frame.
On the other hand, on the hourly time frame, bears can watch for an impulse to the downside to clear the support.
Such an outcome will potentially offer a discount with a fade on rallies towards the 38.2% Fibo target.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.