Overview:
The USD/CAD pair continues to move downwards from the zone of 1.3665 and 1.3600. This week, the pair dropped from the level of 1.3665 to 1.3435 which coincides with a ratio of 61.8% Fibonacci on the daily chart. Today, resistance is seen at the levels of 1.3525 and 1.3450. So, we expect the price to set below the strong resistance at the levels of 1.3665 and 1.3600; because the price is in a bearish channel now. The RSI starts signaling a downward trend. Consequently, the market is likely to show signs of a bearish trend. So, it will be good to sell below the level of 1.3435 with the first target at 1.3288 and further to 1.3200 in order to test the weekly support. If the USD/CAD pair is able to break out the daily support at 1.3435, the market will decline further to 1.3288 to approach support 1 today. However, the price spot of 1.3665 and 1.3600 remains a significant resistance zone. Thus, the trend is still bearish as long as the level of 1.3435 is not breached
The material has been provided by InstaForex Company -
www.instaforex.com