USD/CAD Price Analysis: Bears are eyeing a continuation, but bulls seek to take over

USD/CAD bears are in the market but bulls stepping in.
Bulls target a move back into the void left behind.

Ross J Burland FXStreet

USD/CAD was on the back foot on Thursday as the Loonie added to its recent gains despite a sharp decline in oil prices. Meanwhile, from a technical perspective, we could be in for a meanwhile bullish correction as the following will illustrate.

USD/CAD daily charts

The market is bearish and is headed towards a price imbalance between the current lows and near 1.3050 on the downside. However, a correction could be on the cards in the meanwhile, albeit remaining bearish while on the front side of the bearish trendline:

Zooming in, we can see a void of prices on the way to the trendline resistance and an imbalance of buys between the 1.3180 and 1.3205. A move higher to mitigate the price imbalance would align with the 50% mean reversion of the daily bearish impulse.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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