In our last USDCAD analysis when price was at 1.3135 we expected a bounce towards 1.32-1.3230. Price did exactly that and got rejected at the resistance. Price is now back at recent lows and we continue to expect price to reach 1.30 which is our first target after breaking below 1.35.
Blue lines- short-term bearish channel
Yellow rectangle -key resistance
USDCAD is still inside the short-term bearish channel. Our stop for our bearish position initiated back at 1.35 has now been lowered to the yellow rectangle area at 1.3350. If price makes new lows below 1.3130 we should lower our stop again to 1.3230.
