- USD/CAD bears wait for the next opportunity on a retest pf daily resistance structure.
- 1.3250 could well be a firm resistance for the next significant impulse to the downside.
USD/CAD is in the midst of a downside extension but there may be more liquidity in 1.3250 prior to the next surge lower.
The following is a topdown analysis starting with the monthly chart, weekly and moving down to the daily chart and Fibonacci retracement analysis.
Monthly chart
As can be seen, there is a channel between resistance and support for which the price is trapped within.
A break either side of this zone is either bullish above or bearish below it.
Weekly chart
On the weekly chart, however, there is a bearish bias given the restest of the resistance and the start of a fresh wave to the downside.
Daily chart
The price is firmly in a bearish territory on the daily chart, well below the 21-day moving average.
However, the bears may wish to see a discount in a correction back towards the resistance structures of the 38.2% or the 61.8% Fibonacci retracements.
A retest of these confluent levels offers a higher risk-reward setup in targeting a downside continuation.