USD/CAD Price Analysis: Bears lurking and break below 1.2800 eyed

USD/CAD holding up in the 1.2830s and a correction to mitigate the price imbalance between spot and 1.2865.
Bears need a break of 1.2820 with the downside price imbalance between 1.2800 and 1.2780 then eyed.

Ross J Burland FXStreet

As per the prior analysis, USD/CAD Price Analysis: Bulls eye 1.2880 but bears are lurking, the bulls have moved in for a deeper test of the bear's commitments but have since come under pressure. The focus is on the downside at this juncture for a daily extension.

USD/CAD daily chart, prior analysis

The daily chart's support structure near 1.2820 was pierced in a firm bearish impulse that took the price down to 1.2770 before it corrected at the start of the week. However, it was stated that ''so long as the 1.2900 area remains intact, the focus is on the downside with 1.26 and below eyed.''

USD/CAD H1 chart, prior analysis

Meanwhile, the near-term price action was corrective and bullish according to the analysis on the hourly chart. 1.2880 was residing in an area of the imbalance of price which was anticipated to mitigate in due course so long as 1.2820 held up against any bearish meanwhile pressures.

USD/CAD H1, live market

The price indeed moved in on the prior price imbalances and has since moved sideways in a bumpy ride and consolidative phase. There is little bias to go on although there has been a lower high of late printed. The price is holding up in the 1.2830s and a correction to mitigate the price imbalance between spot and 1.2865 could result in further supply in order to break down the support of 1.2820. In doing so, this will leave the price imbalance between 1.2800 and 1.2780 exposed.

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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