FX.co ★ USD/CAD

USDCADHello traders! The strength of the seller is expressed by the linear regression channel on the M15 chart, sloping downwards. The steeper the angle of inclination, the more activity is shown by the seller. Bears are making efforts to move down towards the target of 1.38146. After reaching the target, a pullback to 1.38513 should follow, which is needed to enter into sales. It is not advisable to sell at the bottom of the channel. Following the channel principle, we buy from the lower channel edge and sell from the upper one. Currently, buying is not very interesting to me even though the channel is pointing south, as it goes against the asset's movement. A relentless downward movement without stops at the level of 1.38513 characterizes the determination of the seller who has decided to make a good run downwards, indicating a significant decline can be expected at this point.

On the main H1 chart, which is crucial for me, I observe a descending channel. Just like on the M15 chart, there are no doubts about the bears' strength. Therefore, as mentioned earlier, I will be considering sales. Based on this timeframe, it is better to enter sales from the upper channel boundary at 1.39044. The decline will target the lower channel boundary at 1.38300. A rise towards the upper boundary of the H1 channel will involve breaking through the level of 1.38513, which should hold the market down with a strong seller, pushing it downwards. However, closing above it indicates signs of bullish activity. The rise will start to fade at 1.39044 with subsequent movement downwards, showing the presence of a strong player for downward movement, with whom I will look for selling opportunities.