USD/CAD Price Analysis: Bears home in on daily trendline support
- USD/CAD bears are in the market at start of week.
- Bears eye a break of the daily trendline support.
The Canadian Dollar barely changed against its US counterpart on Friday, but it is gaining momentum vs. the greenback at the start of the week, moving away from a five-month low. The following illustrates the technical layout from a daily and hourly perspective.
USD/CAD daily chart
A correction is taking place on the daily chart and the support of the trendline could come under pressure for the week ahead. Bears eye 1.3700 in a 50% mean reversion.
USD/CAD H1 chart
Bulls are likely lurking in the prior support area and a test thereof could lead to a correction for the sessions ahead. A move to test the prior support in a 50% mean reversion opens risk towards 1.3790 / 1.3800.
Thereafter, if the bears commit, then a downside extension could play out for a test of the 1.3720s and below.