In our previous analysis we noted that USDCAD remained in a bearish trend but bears better be cautious as price justified a bounce towards 1.31-1.3150. Today price has most probably completed this bounce that reached the channel resistance. From this level I expect USDCAD to move lower.
USDCAD has reached key resistance area. We might see price push above the channel but if this happens I believe it will be short lived. I expect price to get rejected at current levels. As long as price is below 1.3230 we remain bearish and consider each bounce as a selling opportunity. This bounce came as we expected and this is our selling opportunity before the next leg down towards 1.29 starts. Key support is found at 1.3030. Breaking below this level will confirm our bearish view for a move towards 1.29.
At 1.3130 I prefer to be short with 1.3230 stop and target 1.29. Below 1.3030 I prefer to add to my short position as such a break down confirms our bearish view.
