Dear traders,

In my last trading article I shared with you my trading views on EURUSD.

EURUSD has seen a nice rise the following day and then printed a bullish rejection candle and went lower before going higher again.

All in all, it has not been a great run for the EURUSD, but more like a 200-pip range-bound trading.

USDCAD Trading Analysis 17.05.2021

I have been monitoring this pair for a while.

Price has been hovering over a major demand zone.

I am waiting for the USDCAD to possibly go lower below the 1.2000 handle and then give us a sign if we will experience a major reversal or a breakout.

A few things that I will be looking for are:

1) Clear break below 1.2000

2) Candlestick confirmation

3) Clear break above the 1.2000 on the way up.

On the other side, if we see price clearly breaking below the 1.2000 demand zone, I might try to enter into a short trade if price gives me a good entry.

When looking at major supply and demand zones, you should not be trying to favour one or the other side, but be completely objective.

Happy Trading,
Colibri Trader