FX.co ★ USDCAD expected to pull back

USDCAD has stopped its upward movement near key resistance as we explained in previous posts. We now expect price to pull back towards 1.3250 and where we will see if bulls are strong enough to continue this up trend.

Red line - support trend line

Green rectangle - pull back target

USDCAD has reached our bounce target. Price has stopped its strong rise and has paused the up trend at 1.3430 area. With the RSI coming down from overbought levels and with bearish divergence in the 4 hour chart, as we explained in our last analysis, this is not the time to be very optimistic. A pull back towards 1.33-1.3250 is highly probable and justified at this point in time.