USD/CAD Price Analysis: Bears making their move for 1.3750 key daily support

USD/CAD bears have pounced from 1.3800 for a move into the 1.3750s.
1.3750 is a key area of support given the daily trendline.

Ross J Burland FXStreet

USD/CAD is on the move to the downside with 1.3750 on the bear's radar. The price is falling towards trendline support on the daily chart while having already broken the 1.378- structure leaving the bias firmly on the downside for the time being:

USD/CAD monthly chart

The monthly chart's outlook is bullish although a meanwhile correction is starting to take shape with the key Fibonaccis lining up with the prior structure looking left. That being said, as the daily chart below illustrates, should the trendline support hold on what a[[ears to be an inevitable test, then the upside will remain the favored scenario.

USD/CAD daily chart

A break of the trendline, on the other hand, and subsequent support structures, then the downside correction will be well on its way.

USD/CAD H1 chart

At this juncture, the price has already bolted:

The bears have moved into the kill for the 1.3750s. This is an area of imbalance that is being mitigated at the time of writing with bears pouncing from 1.3800 structure. If this area of support were to give, then 1.3700/20 will be the next reasonable target given the point of control.

However, the daily trendline support should be noted which reinforces 1.3720/50 as support.

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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