USD/CAD Price Analysis: The pair may have moved higher today but the downtrend is still intact

• USD/CAD is trading 0.16% higher on Thursday but there are signs it could move lower again.
• The pair rejected a resistance zone and formed a bearish candlestick formation on the 4-hour chart.

USD/CAD 4-hour chart

Despite a small recovery in the greenback on Thursday the pair still looks pretty bearish. After picking up in the EU session once again it seems that when the US market joins the fray the US dollar sells off. This comes despite some relatively positive US data this afternoon as initial jobless claims printed below the aggregate estimate. Although there have been some recent reports that the US government is still stuck on the latest coronavirus aid package.

Looking at the chart now and the price met some resistance at 1.3323. The level is close to the previous consolidation area support area and the bears managed to push the pair down just before it hit the zone marked in blue. If the current 4-hour candle can close below the low of the last one at 1.3267 then there could be another run to the wave low at 1.3233.

The indicators are still on the bearish side. The Relative Strength Index is still under the 50 mark. The MACD histogram is red and the signal lines are under the zero line, which is also a bearish trend indication. 

Overall the pair has been in a downtrend since March. Every time there does seem to be some strength in the US dollar the pair manages to find a way for the downtrend to resume. This time the 1.31 support area from the weekly chart (red line) could be the next target for the bears.

Additional levels