USD/CAD Price Analysis: Bears are moving in with eyes on a test of 1.2800

USD/CAD broadening formations are compelling across the daily and 4-hour charts.
The price imbalances are identified and could be mitigated in the coming days.

Ross J Burland FXStreet

USD/CAD is under pressure on Tuesday in what is a relatively quiet session with nothing left on the calendar until a slew of US data for the US session which leaves the technicals in play. The pair is carving out a broadening formation on the 4-hour chart within a longer-term bearish landscape as per the daily broadening formation.

USD/CAD daily chart

The daily chart has a series of price imbalances to the downside that could be mitigated if the daily broadening formation plays out to the downside. The grey areas are the imbalance left behind by the bullish surge and guard a series of lower pivots to the downside. There is a price imbalance to the upside that could be mitigated first.

USD/CAD H4 chart

On the 4-hour time frame, the price is trading in accordance with the broadening formation there also and there are price imbalances to the upside that could lure in the bulls prior to the next significant downside continuation. In the meantime, the bears are movioiong in and have eyes on the lower end of the formaiton towards a test of 1.2800.

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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