USD/CAD has been bearish for the last three trading days in the daily chart. The pair produced a candle with a bearish body having a long lower shadow. However, the pair is trading below yesterday’s lowest low. Thus the sellers may look for short opportunities and drive the price towards the South further. Let us now have a look at three vital charts and find out some significant levels.
Chart 1 USD/CAD Daily Chart
The chart shows that the price has made a long bearish move in the daily chart. On its way, it made bullish corrections and headed towards the South. It consolidated within 1.31500 -1.32200 and made a breakout at the level of 1.31500. The pair traded and closed below the level yesterday. The candle closed with a long lower shadow. However, the pair is trading below yesterday’s lowest low as of writing. Thus, the sellers may go short in the pair and drive the price towards the South further. The price may find its next support around 1.30000.
Chart 2 USD/CAD H4 Chart
The chart shows that the price had several bounces at the level of 1.31520. It then made a breakout and consolidated around the level for a while. Upon producing a bearish reversal candle, it has been heading towards the South. It may continue its bearish move and find its next support around 1.30500.
Chart 3 USD/CAD H1 Chart
The H1 chart shows that the price consolidated around the level of 1.31060. It produced a bearish engulfing candle, but it did not break the level of 1.31060. Upon having more consolidation and producing a bearish inside bar, it drove the price towards the downside and made a breakout. The pair is trading below the level. The sellers may wait for the price to make a bullish correction and produce a bearish reversal candle at the breakout level. The price may find its next support around 1.30700. On the contrary, if the price makes a bullish breakout at the level of 1.31060, the price may head towards the North and find its next resistance around 1.31150.
These three charts are bearish biased. The H1 chart seems to offer a short entry soon. It may give the pair have enough time to make a long bearish wave before closing the week. If the pair ends up producing a long bearish daily candle with little or no lower shadow, it may remain bearish in the daily chart for some days.