29.05.2023 08:27 PM
USD/CAD: potential downside continuation

The USD/CAD pair dropped again today and now is trading at 1.3587 at the time of writing. In the short term, the price signaled exhausted buyers, so we cannot exclude a potential downside reversal. Still, this scenario is far from being confirmed, that's why we'll have to wait for new opportunities.

Tomorrow, the Canadian Current Account is expected at -9.9B versus -10.6B. On the other hand, the US CB Consumer Confidence could drop to 99.1 points from 101.3 which could be bad for the greenback. Still, better than expected US data could save the USD from the downside in the short term.

USD/CAD Head & Shoulders!

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Technically, the USD/CAD pair failed to reach the upper median line (uml) of the ascending pitchfork indicating exhausted buyers. Now, it has failed to stay above the median line (ml) and it challenges the 1.3583 downside obstacle.

The weekly pivot point of 1.3580 represents a static support as well. It remains to see how it reacts around this downside obstacle.

USD/CAD Outlook!

A bearish closure below 1.3583 is seen as a new selling opportunity.

Ralph Shedler,
Analytical expert of InstaForex
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