Donald Trump will be memorable for Americans and the whole world as the most bizarre president for a few decades. Trump has lost his authority and support from people.
We have warned bulls after the break of the bullish channel that was combined with a bearish RSI divergence. Since then we were talking about a pull back towards at least the 38% Fibonacci retracement level.
Gold price is trading below $1,840. Gold price is breaking out and below the Daily Kumo and this is a bearish sign. The end of the week finds Gold price near its lowest levels and this is not a good sign for next week.
USDCAD remains in a bearish trend making lower lows and lower highs. However we need to warn bears that all this could soon end and we might see a strong upward reversal. We observe two important signs that must not be ignored.
Investors seem to have put the USD bearish trend on pause. The greenback is showing its biggest weekly gain since November last year, and its recent recovery from three-year lows calls into question the prospects of its weakening in 2021.
Conservative traders were advised to look either for SELL Positions around the previous price levels at 1.2330 (150% Fibonacci Level) in the previous article.
Currently, Bearish closure and persistence below 1.2160 then 1.2000 is needed to abort the ongoing bullish momentum to pursue bearish movement at least towards 1.1860 and 1.1770.
Another temporary bullish movement is being expressed to test the previous WEEKLY High around 1.3700 and probably towards 1.3770 where bearish rejection and a possible SELL Entry are suggested.
Bearish closure below the mentioned price zone of 1.2250 - 1.2200 enabled a quick bearish decline towards 1.2170 then 1.2150 which correspond to a previous congestion zone as well as a prominent key-zone.
Traders who took many short dollar positions late last year are now biting their elbows. As capital inflows to the United States increase, the demand for the US dollar may grow. The dollar will be bought on recovery, as it was bought last year in panic due to the pandemic.
