- USD/CAD is trapped in no man’s land on a technical analysis of the market structure.
- There is something for both the bulls and bears from a top-down market structure analysis.
Monthly charts are biased to the upside to complete at least a 38.2% Fibonacci retracement.
The daily chart offers opportunities for both the bears and bulls, but patience is required for further price development.
The following is a top-down analysis from monthly to weekly and the daily chart.
Monthly chart
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The price is trapped between support and resistance and is yet to make a meaningful correction of the bearish impulse.
Bulls will be looking for opportunities on the lower time frames.
Weekly chart
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The price is trading in no man’s land and there are no opportunities from a market structure analysis at least, not n the weekly time frame.
In fact, the next high probability trade could even come from the bearish side, according to the daily chart analysis:
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The daily chart shows that the price is also trapped between support and resistance.
There are prospects of a rally towards the 38.2% Fibonacci retracement of the latest bearish impulse.
In doing so, there comes the probability of a downside extension from that juncture for which bears can monitor the 4-hour time frame for a bearish environment and subsequent optimum entry from bearish resistance structure.
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