- 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.
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.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.