As expected, USDCAD posted a 3rd down week in a row and the lowest levels traded since October last week. Selling pressure did stall at oversold extremes and around the 200 day mvg avg (unbroken since Oct) with Thursday’s profit taking producing a Bullish Hammer pattern. Despite those concern’s the bounce from the lows was modest and the daily Keltner channel continues to point lower. Therefore, allowing for some volatility, we're looking for the trend of 3 down weeks in a row to continue.
I'm looking for profit taking ralliesto be limited with levels near 1.3239 to find fresh selling interest with downside potential to 1.3030 and 1.2946. Only above 1.3314 would, in my opinion, be bullish.
Selling Deepens
Negative Channel
USDCAD Current Trading Positions
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