Conclusion for today’s USDCAD technical analysis:
Price closing below ~1.31783 implies further downside in the USDCAD.
USDCAD chart is presented in today’s analysis on the 6 hour timeframe. Focus is mainly paid to chart patterns in the USDCAD that can be used as a guide in understanding future price development.
The bullish channel in the USDCAD that lasted over 15 months is shown on the chart with eventual breakout below the channel occurring on June 07, 2019. A retracement to the 200 moving average (MA) following breakout can be observed before resumption of the downtrend.
A bearish channel (tentative) is the most recent chart pattern that is used to provide perspective for price action. The width of the channel can be used for projection to determine the minimum price level that will be targeted upon successful break out (up or down.
Support level between 1.32138 and 1.31783 is also indicated on the USDCAD chart. Price breaking through the lower boundary (1.31783) increases the chance of a test of the channel’s lower boundary.
Consolidation at support on the other hand supports the notion of price targeting the upper boundary of the channel.
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