USD/CAD: Bears are driving the car & heading south side

Overview:– By analyzing the daily chart of the pair we can see that pair is falling down with strong bearish momentum and pair converted all the bullish sentiments into the bearish momentum. Well there is no chance for bulls for the time being and the way bears are reacting it seems like they are approaching the 1.3000 level in near term. In our previous report we mentioned to short around 1.3230 level for the target of 1.3000 and pair has made low 1.3080 level which is a sharp decline, we are hoping that readers are minting profit at the moment.

Technical Analysis:– From technical prospective we can see that a  rounding top pattern along with double top pattern has been posted on the daily chart which is providing us bearish  signal and indicating that bears are approaching the 1.3000 level. Two consecutive bearish marabuzo and bearish engulfing candlesticks have been posted on the daily chart which is generating bearish signal. A bearish crossover on the MACD indicator with signal line and MACD line is also generating bearish signal. The RSI has turned down below 50 levels which is flashing the downside signal. By applying the Fibonacci retracement line from previous swing’s low to high we can see that pair has retraced exactly 61.8% which indicates it’s time to short the pair on every bounce.

What next:-  Overall pair is trading and sustaining below the moving average lines which is generating bearish signal. Recently pair has breached 1.3150 level which is previous swing’s low, well below 1.3000 level we will get further bearish signal. The 1.3200 level is key resistance level followed by 1.3300 level whereas 1.3000 level is key support level follwed by 1.2920 level.

Fundamental analysis:- Yesterday there was some election in the canada, the result may come up with some new hopes. Till the time we are bearish and be cautious at 1.3000 level. The US Trades war is still pending some optimism outllok is expected but there is no official news at the moment.

Trade idea:- Based on chart and studies above we can suggest to our readers that go for sell around 1.3100-1.3120 level for the target of 1.3000 level with the tight stop loss of 1.3180 level.

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