USD/CAD Price Analysis: Bears moving in and eye 1.3600/20

USD/CAD is decelerating on the bid and the bears are moving in.
Bears eye a 50% mean reversion and the micro bullish trendline.

Ross J Burland FXStreet

As per the prior analysis, USD/CAD Price Analysis: Bears eye a break of bull cycle trendline, the Canadian Dollar was out of favour on Thursday and USD/CAD remains within the bull cycle trend as the following analysis will illustrate.

USD/CAD prior analysis

It was stated that the M-formation was a reversion pattern that could draw 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.

However, we have seen the price revert and burst through the neckline and thus rendering the setup useless. Instead, the bulls are back in control and staying the course with prospects of a move into the 1.37s and 1.38s.

USD/CAD update

USD/CAD H4 chart

The price is decelerating on the bid and the bears are moving in. This puts the focus on a move into the 50% mean reversion and micro bullish trendline. The 61.8% ratio is just below and could be tapped into for a test of 1.3600 prior to the next bullish impulse.

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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