As expected, the USD/CAD pair continues to move downwards from the areas of 1.2982 and 1.3088. Yesterday, the pair dropped from the level of 1.3088 to 1.2982. The level of 1.3088 coincides with a ratio of 50% Fibonacci on the H4 chart. Today, resistance is seen at the levels of 1.3041 and 1.3088. So, we expect the price to set below the strong resistance at the levels of 1.3041 and 1.3088; because the price is in a bearish channel now.
Amid the previous events, the price is still moving between the levels of 1.3088 and 1.3041. In overall, we still prefer the bearish scenario as long as the price is below the level of 1.3041. Furthermore, if the USD/CAD pair is able to break out the bottom at 1.2989, the market will decline further to 1.2934 (daily support 2). Moreover, the price will fall into a bearish trend in order to go further towards the strong support at 1.2887 to test it again. The level of 1.2887 will form a double bottom. On the other hand, if the price closes above the strong resistance of 1.3088, the best location for a stop loss order is seen above 1.3100;
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
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