USDCAD long-term uptrend channel Median line rejection
On the Monthly USDCAD chart, we can see that the pair was rejected by the Median line of long-term uptrend Andrew’s Pitchfork channel 1.4000 level. Rejection from this resistance means upside channel continuation means that we could have a downside reversal to a channel half line 1.2280. It could certainly to a test of this level lower.
On a Weekly chart, we can see a downtrend Pitchfork channel continuation and a possible test of this channel median line 1.2400 as long as the 1.3000 level holds as downside support. This break is perfect for the short trade entries. You could open a good RR short trade entry with the stop loss just above 1.2900 to target lower on this continuation to 1.2280. Only a sustained break above 1.2900 could lead to an invalidation of a downside continuation.
We have used the combination of the top-down trading analysis to get these key levels explained in the charts. To learn more about Andrews’s Pitchfork tool trading strategy register for education.
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