USDCAD started its sell-off more than a week ago. Last Friday the price reached support 1.2840 and at the moment it was broken but finally rebound occurred. Upward movement didn’t last long. First bigger resistance at 1.2900 caused rebound and USDCAD returned to declines.

Today the price once again has broken support at 1.2840. Next support is being tested right now at 1.2800 level. However, it is unlikely that this support will cause rebound. Next stronger supports are located at: 1.2740, 1.2680 and one of them have a chance to cause rebound. At the second chart below you can see time-frame D1. It is clearly visible that, last mentioned level coincides with lower limit of the bullish regression channel. Due to this, the main scenario for USDCAD is to fall down to 1.2680. Just there rebound should occur and new upward movement will be started.

USDCAD_H4



USDCAD_D1

Error, group does not exist! Check your syntax! (ID: 3)
SHARE
Previous articleCHFJPY – in area of overbought
Next articleSILVER (H4): Another time on the support
Author of worldtrader.pl blog and big supporter of technical analysis. Active medium-term trader. In his analysis uses classical charts, price action as well as harmonic patterns and Elliott Waves. In trading he always tries to take into account two points of market's view, in accordance with the principle that each transaction may be attractive both for the demand and supply traders.