On August 10th we noted a bearish setup in USDCAD and we confirmed that we prefer to be sellers on any bounce as price was expected to get rejected and move towards 1.32. At that point in time USDCAD was trading at 1.3335.
Red lines - bearish channel
Blue lines -bearish short-term channel
Yellow rectangle - key resistance
USDCAD is now trading near 1.3135 almost 200 pips lower from our post about the bearish setup. Trend is clearly still bearish and as long as price is below 1.3350 we remain medium-term bearish. A bounce towards 1.32-1.3230 is possible so bears should not get overconfident. Our target of 1.30 remains valid.
