USDCAD: Bearish flag play

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13 August 2021 | Updated: 13 August 2021

Key resistance: 1.2530
Key Support: 1.2490 – 1.2440

After rejecting the 1.2800 level on July 19th, the USDCAD dropped 3% to retest the 1.2400 level. The impulsive moves in this market are bearish and I have been waiting for an opportunity to short on relative strength (pullback)

Yesterday I tried to short at the retest of the 1.2550 but with no direction in yesterday’s trade I decided to close at break even and reassess today. 

Today’s range was vey tight at the top of a continuation pattern being capped by the previous broken lows.

I decided to retry a short again today at the break of today’s lows which would also mean a break of the bear flag in the mid term bearish structure in this market.

I’m targeting the previous lows of the 1.28 – 1.24 move we discuss earlier, right around the 1.618 of the flag.

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