USD/CAD – opportunity for short

Currency pair: USD/CAD

Timeframe: 4h/1h

Expectations: Downward movement

Comment: On the 4h chart, the price reaches the upper trend line, playing the role of resistance. DeMark shows a downward turn after an upward peak in the overbought area, signaling an impending downward movement.
For refinement, on the 1h chart, we observe RSI divergence, suggesting a possible downward price reversal.
Entry sign – Break of 20MA in BB and Fibo 0.382 level with closing bearish bar.
SL can be placed at around 1.4170 and the main target is the downward trend line and Fibo 0.618 level.

USD/CAD 4h chart
USD/CAD 1h chart

Alternative scenario: The price breaking the upper trend line and closing the bullish bar above it will be a sign of a return to its main bullish range of movement from 1d chart, confirming a figure “flag”.

 Junior Trader Daniel Dimitrov

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