USD/CAD Upward Channel Breakout – Get Ready for a Quick Sell Signal
The USD/CAD pair is projected to hit the day's low of 1.3620 before falling to the key support level of 1.3600. Bears had held the asset
The USD/CAD pair is projected to hit the day’s low of 1.3620 before falling to the key support level of 1.3600. Bears had held the asset for the previous week after failing to persist above the important resistance level of 1.3800.
USD/CAD has violated the upward channel that was providing its support near 1.3690. A bearish breakout on this chart is likely to extend the selling trend until the 1.3515 level.
At the time of writing, the USD/CAD is trading under the 50-period exponential moving average (EMA) support level of 1.3624. The same breakdown will result in a bearish warrant for the strong greenback.
In addition, the Relative Strength Index (RSI) (14) has moved from 60 to 40 in the negative zone, suggesting a bearish trend. This also suggests a bearish bias for the Loonie.
Thus, we are entering a sell trade under $1.36591 to target $1.3599 levels. All the best!
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