USDCAD back tests broken support

USDCAD has bounced off 1.29-1.30 towards 1.3150. In previous analysis we noted that price had resistance the broken trend line (previous support) at 1.3150. Price back tested this level from below and we now see rejection signs. This is a bearish sign.

Red line - resistance

Green line - resistance (previous support)

Blue line - RSI support

USDCAD is showing rejection signs at 1.3150. As long as price is below 1.3150 we expect price to continue lower towards 1.30 and most probably to 1.29 and break below it. This scenario will be confirmed if the decline in price is followed by the RSI price breaking below the blue trend line support. Another bullish divergence would not be a good sign for sellers.