USDCAD break and retest of trendlines in the market confirms the change in market direction. The demand zone at $1.230 was used to start an upward move in the market during the late period of October last year. The market faced resistance at 1.2960. The previous low, formed at the open hour on the 17th of November, was swept. The market tested the trend line that aided bullish action on the 30th of December for the third time. The trend line failed to hold the price. There was a break and retest of the trend line. The retest was fulfilled on the 6th of January with a shadow above the bearish daily candle.
The market slumped into the demand zone at 1.2470 after the break and retest of the ascending trend line. The market ascended after a few days of ranging. The trend line that helped lower pricing was violated. There was a break of the bearish trend line on January 24, 2022. The retest was fulfilled two days later.
The market continued to range in February. A fake-out was formed during March above 1.27770. The bears stormed the market heavily. Multiple demand zones were violated as a result of the bearish push. The market tested a bullish trend line. The gentle slope was broken on the 22nd of March. A retest of the bullish trend line was fulfilled on the 28th of March.
USDCAD Short Term Trend: Bearish
The daily candles are currently resting on the 1.2470 demand level. On the four-hour chart, the market is oversold on the Stochastic. The majority of the candles in the lower timeframe are resting below the Moving Averages (periods nine and twenty-one). The break and retest of the bullish trend line is expected to push the market down to 1.2300.
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