USDCAD Pulls Back to Test Former Support

Daily Bars

Prepared by Jamie Saettele, CMT

“My best guess is that sideways trade in recent months composes a triangle. In this case, the triangle is bearish and a terminal thrust below 9841 would complete a bearish cycle.” The close below 9834 constitutes a valid breakout and the measured objective is 9630 (9840-width of range). 9860, 9885, and 9930 are resistance and I favor shorts into this range with a stop above 9980 to play the breakdown.

Bottom Line (next 5 days) – sideways/lower?