- April 30, 2026
- Posted by: EWGFX
- Category: Technical analysis
The Core Logic:
The Greenback is losing its footing against the Loonie. We are currently operating inside a massive macro Descending Broadening Wedge, and the recent price action suggests the bulls have officially run out of steam at the local resistance.
The Setup Breakdown:
The Squeeze: Price spent the last few days coiling inside an orange-shaded consolidation zone. This was a classic “war of attrition” between buyers and sellers.
The Fracture: We’ve seen a decisive breakdown from the local Wedge support. This shift in market structure signals that the bears are now in control of the short-term trend.
The “Retest” (Action Zone): Notice the red box near 1.3675 – 1.3685. This is the “scene of the crime”—previous support flipped into new resistance. Price is currently “kissing” this level before the next impulsive leg lower.
Momentum: The bearish engulfing candles on the 1-hour chart confirm that institutional supply is sitting right at the red box.
Strategic Levels
The Entry: High-probability sell zone between 1.3675 and 1.3685 (The Retest).
The Target: 1.3610. This aligns perfectly with the macro Support line at the bottom of the broadening formation.
The Safety Net: A sustained hourly close above 1.3710 (the recent local peak) would invalidate this bearish setup and signal a return to neutral.
Bottom Line:
Don’t chase the move, wait for the retest. As long as the local resistance remains a ceiling, the path of least resistance is a slide toward the 1.3610 liquidity pool.