To make a proper analysis of this pair, it is worth looking at the weekly chart. It shows that for more than two years the pair has been moving in a growth channel with a range of about 800p.

USDCAD Weekly – a sequence of higher peaks and higher lows was broken in May this year.

Since the peak at the end of May this year was lower than the previous one, the existing system of higher highs and higher lows was broken. This may indicate the end of the upward trend.

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USDCAD Daily – the price has already defeated IB bottom and channel support

In the daily chart (above), the price broke the bottom of the Inside Bara pattern created by the candle on October 11 and, at the same time, overcame the support of mentioned growth channel. The MACD oscillator is in a bearish phase which supports further declines on this pair. The first target for bears may be the nearest demand zone 1.3050. If planning a short I would look for a setup in the area of the defeated channel support and the lower IB border.

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