In our last analysis on USDCAD we pointed out the confirmed resistance around 1.33 and that we were bearish as price showed weakness signs. Our view was confirmed shortly after as price got rejected and sellers pushed price from 1.33 to 1.3178 where it currently is.
Black line - resistance
Red arrows- weakness signs
Blue line- major support
Red line -major resistance
USDCAD has confirmed that 1.33 is now a very important short-term support. Price is pulling back as expected and we should expect the blue trend line support to be tested over the coming days. Between 1.3145 and 1.3120 we find important support. So if the decline pauses in this area, bears should better take some of their short-term profits. As long as price is below 1.33 price will be vulnerable for another push lower towards 1.30.
