USD/CAD Price Analysis: Bears eye a break of bull cycle trendline
- USD/CAD is being resisted by the upper quarter of the 1.35s around a 50% mean reversion of the prior bearish impulse.
- A break of the trendline and the 1.3520 opens risk to the 1.3380s.
As per the prior analysis, USD/CAD Price Analysis: Bears on the prowl at key resistance, USD/CAD is chipping away at the trendline support while being resisted by a key area on the daily chart. The following illustrates prospects of a downside continuation for the days ahead with 1.3400 and 1.3380 eyed:
USD/CAD prior analysis
It was stated that the M-formation is a reversion pattern that drew the price into the neckline. It was suggested that if this were to act as a resistance, the micro trendline would come under pressure and open the risk of a substantial continuation to the downside for the days ahead.
USD/CAD update
The price is pressed against the trend lines and this could lead to a retest into the resistance area between 1.3590 and 1.3560s as illustrated before the bears engage again.
USD/CAD H4 chart
However, as illustrated, the price is resisted by the upper quarter of the 1.35s around a 50% mean reversion of the prior bearish impulse. A break of 1.3520 opens risk to the 1.3380s.
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.
