In our last analysis on USDCAD we warned bulls that price was heading towards 1.23. USDCAD provided a fake break out above 1.26 and took it back by breaking key support at 1.25. Failure to hold above 1.25 was our bearish signal as explained in our analysis. This gave us 1.23 as the first target.
Blue line - support
USDCAD is trading just above 1.23 and remains in bearish trend as long as price is inside the downward sloping wedge pattern. Resistance is found at 1.2470-1.25 area. USDCAD is now trading inside an area where bears should look to start taking profits and protect their gains. Price could continue lower towards the blue line at 1.2260 but the lower we get the higher the chances for a bounce back towards the red resistance trend line.
