USD/CAD: Bears are testing the depth of the river

Overview:– By analyzing the daily chart of the pair we can see that  pair is falling down with strong bearish momentum. Overall pair is making successively lower lows and lower highs and heading south side with clear bearish momentum. In our previous report we mentioned to sell around 1.3180-1.3190 level for the target of 1.3100 level with the tight stop loss of 1.3250 level., we are hoping that readers are minting profit at the moment.

Technical Analysis:

From technical prospective we can see that a rounding top pattern has been completed like a cake walk as we have mentioned in our previous also report about this pattern. Overall bears are driving the car and heading south side it seems like bears are testing the depth of the river and they are dominating the bears at every level. The 1.2880 level is the support level and a valid breakout below this level will open the way towards the 1.2800 and 1.2700 level. Overall pair is trading below all the major and minor EMA lines which is providing weakness in the pair.

A bearish crossover on the MACD indicator with signal line and MACD line is also generating bullish signal. The RSI has turned down below 50 levels which is flashing the downside signal.

What next:-  On weekly chart pair has breached previous year’s low and now it seems like bears are trying to break the support level  of year 2018 i.e. 1.2700.  The 1.3100 level is key resistance level followed by 1.330150 level whereas 1.2900 level is key support level follwed by 1.2800 level.

Trade idea:- Based on chart and studies above we can suggest to our readers that go for sell  around 1.2990-1.3000 level for the target of 1.2900 level and 1.2800 with the tight stop loss of 1.3100 level.

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