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  • USD/CAD has violated a trendline rising from September 2017 lows.  
  • The breakdown is backed by bearish readings on key indicators.  
  • With charts biased bearish, the pair risks falling to 1.30.

USD/CAD is currently  operating on slippery grounds at 1.3067, having breached a two-year-long ascending trendline last week.  

The pair closed at 1.3079 on Friday, confirming a downside break of the trendline rising from September 2017 and January 2018 lows.  

The breakdown has bolstered the bearish setup as represented by the below-50 reading on both the 14-day and 14-week relative strength indices and lower highs, lower lows setup on the daily chart.  

The currency pair looks set to test and possibly break below the immediate support at 1.3042 and drop toward 1.30.  

A daily close above 1.3181 (Dec. 20 high) is needed to invalidate lower highs set up and confirm a bullish reversal.  

Weekly chart

Trend: Bearish

Technical levels