USD/CAD Price Analysis: Bears losing their grip as price attempts to break channel resistance
|- USD/CAD bulls seek a break of the hourly resistance structure.,
- Bears will remain favoured so long as the channel is respected.
USD/CAD has seen two-way price action in a mixed start to the week so far. The following illustrates the bullish and bearish scenarios on the hourly chart, leaning on a daily bearish bias. With the price on the backside of the prior bullish trend, USD/CAD remains in a bearish trend despite the recent correction. The bears could look to commit at this juncture and see the price revert to the downside within the descending channel. However, the 1.3502 level remains key at this point:
USD/CAD daily chart
USD/CAD H1 chart
The price on the hourly chart is sliding its way out of the channel resistance again and should the bears commit, they will need to get below 1.3600 where a void of liquidity could see the CAD rally to the daily support target in quick concession. On the other hand, should the bulls find the staying power, 1.3680 and then 1.3700 could come under pressure and give way to a breakout to the upside:
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