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This key USD/CAD support/resistance zone is a level that we’ve looked at being able to manage our risk around before.
With the pair in a huge higher time frame bullish trend, we were last time looking to play from the long side so as to not have to fight the market.
Comparing the current daily chart to the setup in the old blog post that we linked to above shows that while price did re-test the level, there was no momentum and the setup failed.
Price of course fell through the level and momentum saw a good run of consecutive bearish daily candles.
Into the present again and price is back testing the zone as possible resistance. It’s the same level, but you are no longer with the overall trend.
Not the type of setup I am jumping out of my skin to take, but when the level comes back into play, you certainly have to take notice.
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Dane Williams – @VantageFX
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