- USD/CAD is having a deep pullback in the main bull trend.
- On the 15-minute chart, USD/CAD broke below the bear channel (blue) and found support at the bear trendline of August 24 (black dotted line). The market is trading below falling and widening simple moving averages suggesting strong bear momentum. It remains to be seen if the bears can break below 1.2900 figure on the first attempt or if the market will have a small rebound first.
- However, since 1.2959 (August 7 swing low) has been beached more downside is expected in the near future with 1.2857 (June 6 low) as next target.
USD/CAD 15-minute chart
Spot rate: 1.2894
Relative change: -0.58%
High: 1.2984
Low: 1.2889
Trend: Bullish
Short-term trend: Bearish below 1.3070
Resistance 1: 1.2920 supply level
Resistance 2: 1.2959 August 7 swing low
Resistance 3: 1.3000 figure
Resistance 4: 1.3022 July 25 low
Resistance 5: 1.3048-1.3066 area, August 14 low and July 9 low
Resistance 6: 1.3100 figure
Resistance 7: 1.3120-1.3155 zone, supply/demand level and June 18 low
Resistance 8: 1.3172 August 13 swing high
Support 1: 1.2900 figure
Support 2: 1.2857 June 6 low
Support 3: 1.2800 figure
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