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  • 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.