USD/CAD has been bearish in the daily chart for the last three days. The pair after being bearish made a bullish correction. It found its level of resistance and produced a Doji candle followed by a bearish Pin Bar. Yesterday’s candle came out as a bearish engulfing candle closing below the level of support where the price had a bounce earlier. Intraday charts suggest that they made a breakout at yesterday’s lowest low and traded below it for several candles. Thus, the pair may remain bearish today as well. Let us now have a look at three vital charts.
Chart 1 USD/CAD Daily Chart
The chart shows that the price made a bearish move and had a bounce at 1.33300 and produced a bullish engulfing candle. The level of 1.34300 worked as a level of resistance and produced a doji candle. The chart then produced a bearish pin bar followed by a bearish engulfing candle. Yesterday’s candle closed below the level of 1.33300. Thus, the sellers may look to go short in the pair and drive the price towards the South. The price may find its next support around 1.32000.
Chart 2 USD/CAD H4 Chart
The chart shows that the price was trapped within two horizontal levels. The level of 1.33340 worked as a level of support. The price had a strong rejection at the level of 1.34230 and produced a bearish candle. Since then, it has been heading towards the South. It has made a breakout at the level of 1.33340 and traded below the level for two more candles. The sellers may wait for the price to consolidate and produce a bearish reversal candle to go short in the pair. The price may find its next support around 1.32300. If the price makes a bearish correction, the level of 1.33340 may work as a level of resistance. The sellers may go short upon getting a bearish reversal candle at the level of 1.33340.
Chart 3 USD/CAD H1 Chart
The chart shows that the price made a strong bearish move and made a breakout at 1.33200. The pair traded below the level for several candles. The sellers may wait for the price to make a bearish correction and produce a bearish reversal candle to offer them a short entry. The level of 1.33000 may work as a level of resistance. If the level produces a bearish reversal candle, the sellers may drive the price towards the level of 1.32600. If the level of 1.33000 is breached, the buyers may push the price towards the level of 1.33100.
All these three charts look bearish. Considering these three charts, it seems that the pair may have a bearish day today as well.