Green lines- wedge pattern
Yellow line - bearish RSI divergence
In previous posts we talked about the limited upside potential in USDCAD and that we preferred to be neutral if not bearish. We were expecting a down turn despite price making higher highs and higher lows.Price has broken below the lower green support trend line and despite a short-term bounce, price continues to make lower lows and lower highs. At 1.3505 we find our next crucial support level. Price is currently at 1.3531 with a low at 1.3521. We expect over the coming sessions for price to break below 1.35. The RSI bearish divergence was the warning we got for this reversal. The RSI has still not reached oversold levels. More downside is expected.
