USDCAD is 40 pips lower since our last analysis where we pointed out that price should move lower as a bearish reversal signal was given. Price could continue lower towards 1.32-1.3225 where we could see a back test of the broken trend line resistance.
Red line - broken resistance trend line
Green lines - bullish channel
USDCAD remains inside the bullish channel since December low. Price is now pulling back as expected and is testing both the lower channel boundary and the broken trend line resistance. If price holds above 1.32-1.3225 then we could have a successful back test and a bounce to resume the up trend. Anyone taking advantage of the short-term bearish reversal signal, should now protect their short positions at break even.
