We are bearish USDCAD since it broke below 1.35 looking for a move towards 1.30. Price continues to make lower lows and lower highs staying inside the short-term and medium-term bearish channels.
Blue lines- short-term bearish channel
Yellow rectangle - horizontal resistance area
USDCAD is challenging recent lows at 1.3130. Price has made a triple short-term top around 1.3230 where we expected it to bounce. Price got rejected at the upper channel boundary confirming the importance of the bearish channel. Breaking below 1.3130 will open the way for our final target of 1.30. This will also make us lower our stops from 1.3350 to 1.3230.
We remain bearish as long as price is below 1.3230. Current price formation favors bearish positions as long as we trade below the triple top formation.
