The USDCAD Bearish Break and Retest Is Successful

Market Analysis – January 24

The USDCAD market direction appears to be bearish after a second break, and a retest occurred in the market.

USDCAD Key Levels:

Resistance Levels: 1.400, 1.390, 1.370
Support Levels: 1.330, 1.290, 1.250

USDCAD Long-term Trend: Bearish

USDCAD seeks to offer sell-side delivery after a long-term uptrend in the market. The bullish trend line on the higher timeframe continuously served as a support tool for upward moves in the market. The Stochastic revealed that the market was oversold every single time the market retraced to test the bullish trendline.

The price rose from 1.250 to 1.390 from June until October, after which the bears kicked in. The Bollinger Bands indicated that the market had changed its trend in November. The daily candles had dived from the upper band to the lower band of the Bollinger. The market retraced higher again to 1.370, where the sellers had another opportunity to short the market.

USDCAD Short-term Trend: Bearish

Recently, the bullish trendline did not function as a support in the price action. USDCAD sellers have successfully broken the bullish trendline to the downside. The market has retraced to test the trendline. A selloff below 1.330 is anticipated in the market.

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