Is it trend reversal?

23 Jan 2021

Let's have a look on USDCAD. Firstly, what is the nature of the market? Clear descending channel on 4H timeframe, which means that reversal is coming. But nobody want to trade against the trend, right? We have created the minimum at 1.2600 and from that point price starts to move very hard to the upside for +- 130 pips. The structure (descending channel) didn't brake yet, so potentially waiting for some pullback. Psychological level at 1.2660-1.2650. And that level will be our key level - from that point I will see if we break that level or will we go correctively and then HUGE impulse to the 1.2900...? Let me know your thoughts below!