USDCAD remains in a bearish trend making lower lows and lower highs. Price is trading at 1.2495 with a weekly high at 1.2546 and a weekly low at 1.2363. Price as we see in the weekly chart has formed a downward sloping wedge pattern or bullish wedge. Usually when price breaks out of such formations we usually see a retracement towards at least the 38% level.
The upper wedge boundary at 1.2630 is the most important weekly resistance right now. As long as price is below it we expect price to continue lower. Having touched the lower wedge boundary for the third time, USDCAD is expected at least to bounce towards the upper boundary for a test. If price breaks out of the wedge pattern then our first target will be 1.3180-1.3150.
