You can see that USD/CAD has bounced back from 1.3337 static support, downside obstacle, and now is traded at 1.3416 level. The downtrend remains intact as long as USD/CAD is located below the downtrend line, that's why we could think that the current increase is temporary.
We may have an up reversal, larger upside movement if USD/CAD will breakout and stabilize above the downtrend line, but we cannot talk about this scenario as long as the rate is traded far below this trendline.
- USD/CAD Trading Tips
The outlook is bearish, USDCAD could drop deeper, as long as it's trapped below the downtrend line. So, we could sell this pair again if it will drop again below the 1.3337 level, let's say if it touches 1.3310 level and you can keep this selling position as long as USD/CAD is located within this downtrend.
If you think that USD/CAD will register an important increase and you want to buy this pair, you should wait for the price to jump and stay above the downtrend line, this will be a strong signal that the pair will turn to the upside and it will increase on the medium to the long term.
