USD/CAD Price Analysis: Bears are growling back at the US dollar bulls
- USD/CAD bears moving in for the kill as US dollar strength is faded into month-end.
- The bears are eyeing the downside market structures for the coming days/week.
As per the prior analysis, USD/CAD Price Analysis: The end of the rally is nigh according to market structure, despite a surge higher in the greenback to 20-year highs, the bears are growling back and a bearish outlook persists for the pair as follows:
The monthly outlook is bearish given the wicks and the weekly chart still shows hidden divergence despite the higher high printed since Wednesday's analysis.
USD/CAD weekly chart
With that being illustrated, there is still time to go for the weekly close, so, theoretically, that really needs to be discounted until the close but is worth some consideration nonetheless.
USD/CAD daily chart
The current price action is leaving the prospects of a bearish engulfing daily close following the prior day's doji. This is regarded as bearish and a prelude for the next days. There are expectations of a correction to test the 1.2770s, and then potentially as deep as a 38.2% Fibonacci retracement below 1.2750.
1.2650 comes thereafter but the point of control of where the majority of business was transacted for the month of April is much lower, down to the neckline of the W-formation at 1.2611.
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.
