FX.co ★ bridget.franecki | TST as the Foundation for Medium-term Trading

usd/cad didn’t go where it needed to yesterday, but today Leves has again positioned the channel so that there’s kind of nowhere higher to go. I mean, there is room, but there’s no visible desire to push the price there. I’m talking about the fact that we’ve been at the upper boundary of the channel since the morning. And here a move toward the daily balance looks just perfect, the 1.4010/1.4000 level is simply luring the price to it, but what is the mandatory zone doing here? That’s exactly what might not let the price go lower. Yes, mandatory zones, like any other Leves levels, are broken easily, especially in a trending move, but on Friday I somehow missed such a “phantom” in the form of this same mandatory zone, which was carried away somewhere against logic, as if now we’re being pulled back to that place. We’ll see, but for now the move along the red scenario is clearly visible technically, though because we need to break below today’s mandatory zone here, it’s hard to imagine a move below the daily balance. Although usd/jpy has shown us that there can be much wilder breakouts :))), but it’s in a league of its own when it comes to working with Leves.