This week USD/CAD showed massive bearish reaction towards resistance area 1.0040-1.0060 manifested in the "Inverted Hammer" daily candlestick.
This resistance area which was able to keep USD/CAD prices below it for almost one month despite the several trials to break it, also corresponds to the downtrend line and the upper limit of the transverse channel depicted on the chart.
This Week, USD/CAD could successfully break its intraday support at 0.9940 which allowed the current decline of currency price to happen.
The USD/CAD pair has an intraday support at 0.9850 which managed to stop further decline of the pair yesterday with some bullish recovery.
We need to see 4H closure below 0.9850 in order to resume the bearish movement.
Daily closure below 0.9920 confirms the bearish direction towards 0.9770. However, 4H closure above 0.9990 gives warning for sellers to get out of the short positions.
Based on the previous analysis
For swing traders, Daily closure below 0.9920 gives the short signal towards 0.9770.
For Intraday traders, Selling the USD/CAD pair near 0.9940 will be good with SL placed above 0.9990.
