USD/CAD: Bears are driving the car and heading towards south side.

Overview: The pair is slumped towards its lowest level since early September at 1.3026 on Thursday and seems to have gone into a consolidation phase in the late American session. The pair is trading at 1.3052, down 0.63% on the day. The pair is showing that is falling with continuing negative volatility and this trend may continue further.

Technical Analysis– The pair is showing technically negative momentum in the market. The bears are becoming aggressive in the market and expected the downfall ahead. As we can see in the H4 chart, the descending tendency continues. The shooting star pattern is being forming, which gives strong power to the bears. The bearish marabuzo is also forming which gives us double confirmation of the sell signals. The last hope of the sellers is 1.3000 support level below that level we can go for the fresh sell.

We can say history repeats itself so Technically we can say levels are made to be broken and the pair have been in a downtrend since mid of march so further declines can be assumed. The RSI is also below the 50 levels so it’s showing the strong bullishness sign and the MACD indicator is also below the zero lines. The major EMA lines are below the SMA lines and forcing the market to follow the trend. Bears are showing their potential in the market as we can suggest from our analysis that sellers should go for selling in the market. The current position of the market is 1.3085, the support of the market is 13010 followed by 1.2950, and resistance 1.3157 followed by 1.3231.

Trade idea: Based on the above discussion we can give sell below 1.2980, the target is 1.2830, and stop-loss is 1.3090.

 

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