USDCAD Jan 25, 2020

As you can see from the chart we moved from a demand area to a well-tested resistance and supply area. We can clearly see that it could not break that area of resistance and could not go to the next supply area and therefore it began moving down. As it moved down with nice big bearish candles it made a retracement to the 0.618 Fibonacci level (Golden ratio) and made a touch as you can see with the two green wicks.

If we look at our RSI we can see that it is over 50,00 which can indicate an overbought currency. We have a lots of confirmation for a short position and therefore I will be shorting this pair.