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  • USD/CAD is trapped in no man’s land on a technical analysis of the market structure. 
  • There is something for both the bulls and bears from a top-down market structure analysis. 

Monthly charts are biased to the upside to complete at least a 38.2% Fibonacci retracement. 

The daily chart offers opportunities for both the bears and bulls, but patience is required for further price development. 

The following is a top-down analysis from monthly to weekly and the daily chart. 

Monthly chart 

The price is trapped between support and resistance and is yet to make a meaningful correction of the bearish impulse. 

Bulls will be looking for opportunities on the lower time frames.

Weekly chart

The price is trading in no man’s land and there are no opportunities from a market structure analysis at least, not n the weekly time frame. 

In fact, the next high probability trade could even come from the bearish side, according to the daily chart analysis:

The daily chart shows that the price is also trapped between support and resistance. 

There are prospects of a rally towards the 38.2% Fibonacci retracement of the latest bearish impulse. 

In doing so, there comes the probability of a downside extension from that juncture for which bears can monitor the 4-hour time frame for a bearish environment and subsequent optimum entry from bearish resistance structure.