USDCAD:- Trend reversal overbought suggest us to short

Overview:– Pair is showing too much volatility and heading towards north side and marked a high of 1.3075 but the journey was started from 1.2457 level and since then bulls took the control and dominated the bears at every level. The pair was making successively higher highs and higher lows by taking the support of an uptrend line. But after arriving at 129.50 levels it seems like bulls are taking some rest and getting down for some correction or some profit booking is going on.

Technical Analysis:– A rickshaw man doji candlestick at the top of the day at key resistance level is suggesting us to keep bearish view on the pair from intraday point of view. It’s just a starting we will get further bearish signal below the 132.50 level. It seems like bears have snatched the bite from bull’s mouth and it’s time to sell the pair with good risk and reward ratio.

Earlier bulls were driving the car and heading north side but now they are trying to hand over the game in the bear’s hand which will be an early call, but if today bears able to take it down below 1.2900 level then it will be confirmation of bears stake and it will open the way towards the 1.2700 level in near term. Overall pair is trading above all the major and minor EMA line which is providing strength in the pair so it is not going to be easy for bears.

The RSI turned down from overbought territory which is a recent development and providing trend reversal signal whereas a bullish crossover on the MACD indicator is still providing us bullish signal.

Trade idea :-Base on chart and studies above we can suggest to our readers that go for sell below 1.2900 level for the target is 1.2800 and 1.2700 with the tright stop loss of 1.3000 level



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