The market has stabilized, the first signs of a downtrend appeared

June 4, 2020 6:27:26 AM by Alexander Zorevyk
Forecast Details
PairUSDCAD
Direction Sell
StatusClosed (1.3475)
6:18
6:18
Jun. 4, 2020

-65 p
1.3600
Stop Loss
1.3535
Entry
+60 p
1.3475
Target 1
+89 p
1.3445
Target 2
Chart & Analyst Comments
The market has stabilized, the first signs of a downtrend appeared
  1. According to the most brokers’ data, more than half of the traders are currently in long positions on USDCAD. As a result, we recommend considering only Short trades at this time.
  2. The Ratios indicator shows the change in the ratio of market players towards buyers. Their increase while the downtrend may indicate the activity of averaging traders. This can serve as "fuel" for further downtrend.
  3. The increase in buyers is observed both in the downward movement and in the retracement movements. Retail traders still believe in the possibility of price increase.
  4. MVP line is above the price and acts as a resistance level.
  5. These accumulation of retail traders stop losses coincide with the level of the previous low. This level will serve as the target for our trade.