USD/CAD Turned To The Downside!

USD/CAD is trading in the red on the H4 chart at 1.1516. It has dropped as the Dollar Index has slipped lower from 92.35 today’s high. DXY’s further decline after the US data release could bring further drop in USD/CAD.

Technically, USD/CAD is still expected to drop despite the most recent rebound. The price has come back higher to retest the up-channel’s support, the uptrend line before dropping deeper. It remains to see how it will react after the US Unemployment Claims release.

The economic indicator is expected to drop from 400K to 382K in the previous week. Worse than expected figures could weaken the USD.

USD/CAD Technical Analysis!

USD/CAD has registered only a false breakout with great separation above the 38.2% retracement level and through the uptrend line. It is located at 1.2505 level at the time of writing below the 23.6% (1.2513) level.

The breakdown through the minor uptrend line signaled a potential decline. Dropping and stabilizing below the 1.2498 weekly pivot point may signal a broader decline.

Conclusion!

USD/CAD’s rebound was expected after its sell-off. It has come back trying to retest the uptrend line before dropping again. The selling pressure is high as long as it stays under the descending pitchfork’s upper median line (UML).

 

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