USD/CAD:Bears are at front foot after cracking the downtrend line

July 26 , 2018

 

By observing the daily technical chart we can see that earlier pair was making successively higher highs and higher lows by taking the demand booster from an uptrend line. But after arriving 1.3380 level the demand was limited and it tumbled down to 1.3030 level. Well in the recent selloff the mentioned uptrend line has also breached out which means bears are playing at their front foot.

 

The bearish engulfing candlestick followed by bearish marabuzo candlestick is generating bearish signal and it’s just  a starting the further downfall is still expected. Odds are in favor of bears and intraday bias remains bearish on the pair as long as 1.3270 level.The way bears are reacting it seems like they are appraoching the 1.2700 level in short term.

 

 

 

Yesterday we have seen strong spike in the crude oil and we get effect on the pair as CAD got stronger and simultaneously USD become weaker as Trump-Juncker meeting goes underway due to that pair slipped almost 100 pips in a day and created a volatile session for traders and investors.

 

 

The pair is trading below all the major and minor moving averages and favoring the bears. The RSI along with MACD indicators are also favoring the bearish sentiments. A bearish divergence on RSI indicator is providing clear confirmation of trend reversal signal.The 1.2721 level is the key support level followed by 1.2650 level where as 1.3050 level is the key resistance level followed by 1.3150.

 

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