USDCAD has reached our 1.30 target area and is bouncing towards 1.31 as we expected in our last analysis. USDCAD remains inside the downward sloping channel making lower lows and lower highs.
USDCAD can continue its upward bounce towards 1.3150 and the upper channel boundary. This would be a normal counter trend bounce to relief some of the selling pressures. As long as price is below 1.3230 we consider each bounce as a selling opportunity. Bulls need to break above 1.3150 and stay above in order to hope for a bigger bounce. For now we believe that price is more probable to get rejected around 1.31-1.3150.
