FX.co ★ Sware | USD/CAD

USDCAD Price Dynamics: Our conversation focuses on the ongoing live evaluation of the pricing of the USD/ CAD currency pair. After yesterdays analysis, the resistance breakdown at the first impulse zone 1.36852 might be false. If this is true and USD/CAD quotes consolidate below this level, the Canadian dollar could begin another bearish pullback towards the lower border of the first impulse zone at 1.36402. The markets reaction to a possible test of this level will become apparent during trading. From this support, the loonie could turn bullish again or continue its bearish movement towards the following supports at the central corner of the ascending fan and the bullish start line at 1.35672. A false breakdown of 1.37062 could lead to continued decline. A further drop in the exchange rate may follow any market growth attempt afterward.

A false breakdown of the 1.37112 range might also result in continued decline. Although a slight upward correction could occur, the decline will likely persist. Breaking below 1.36662 and stabilizing there will signal a sale. A drop below 1.36572 will also indicate sales. A minor upward correction has occurred, but the decline may continue further. I recommended selling the USD/CAD pair below 1.36782 for a rebound, but the pair confirmed its upward trend and closed trading above this level at 1.36932. That broke the trading range, and any sales below 1.36782 should be likely. The path to 1.38282 is clear, indicating another significant price increase for the USD/CAD pair. Sales can be possible if the price returns below 1.36782, as false signals are often likely on Fridays.