USD/CAD produced a bearish engulfing candle on the daily chart yesterday. The price had a rejection around the level earlier. Thus, the Bear may have found its double top resistance. The price has not breached the last swing low or the neckline. However, major intraday charts suggest that we may get a daily breakout at the last swing low. If that happens, the pair may get bearish on the daily chart. Let us now have a look at three major charts.
Chart 1 USD/CAD Daily Chart
The chart shows that the price had a rejection at 1.41300 earlier. It produced a bearish engulfing candle and continued its bearish move with one more candle. The price headed towards the North and consolidated around the level again. Yesterday, the chart produced a bearish engulfing candle from that level. A bearish daily engulfing candle at a double top resistance may attract the sellers to look for short entries. The daily sellers are to wait for the daily chart to make a breakout at the neckline at 1.39200 to go short in the pair.
Chart 2 USD/CAD H4 Chart
The H4 chart shows that the price upon producing a double top around 1.41150 made a strong bearish move. It has been having consolidation around 1.39650. A bearish reversal candle followed by a breakout at 1.29200 may attract the sellers to go short in the pair. The price may find its next support around 1.38200. On the other hand, if the price makes a bullish breakout at 1.39650, it may head towards the North with a moderate pace and find its resistance around 1.40200.
Chart 3 USD/CAD H1 Chart
The H1 chart seems that it is about to make a breakout at the lowest low of the wave at 1.39245. After having a bounce at 1.39245 level, the price headed towards the upside. It has found its resistance at 1.39665 and has been bearish since then. The sellers may go short below 1.39245. The price may find its next support at 1.38640. Since the H4 chart has been bearish, thus the price may breach the next support in a hurry and head towards the South with good bearish momentum. In case of a bullish breakout at 1.39665, the price may find its resistance at 1.40200.
Considering these three charts, it seems that the Bear may dominate today. If the daily candle closes below the neckline without having a long lower shadow, the pair may get bearish and remain bearish for a while.