USD/CAD after making a bearish move on the daily chart had an upward correction. The chart produced a doji candle day before yesterday. Yesterday, the chart produced a bearish engulfing candle breaching the wave’s lowest low. Thus, the sellers may look to go short in the pair and drive the price towards the South further. The H4 and the H1 chart look good for the bear as well. Let us now have a look at those three charts.
Chart 1 USD/CAD Daily Chart
The chart shows that yesterday’s candle breached the level of 1.38700, closing well below the level. The price had a bounce at the level three times earlier. Thus, the breakout is considered a triple bottom breakout. The chart shows that the price has enough space to travel towards the South. 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 1.33000.
Chart 2 USD/CAD H4 Chart
The chart shows that the price made a strong bearish move and found its support at 1.37600. The price consolidated within 1.37600- 1.38000. The level of resistance has already produced a bearish inside bar. As of writing, the current candle has been very bearish. If the candle ends up being a bearish engulfing candle, the sellers may go short below the level of 1.37600. The price may find its next support at 1.36700. Since the daily chart allows the price to travel towards the South with enough space, the H4 sellers may consider taking a partial profit at the next support and let the rest of the trade run to grab more pips.
Chart 3 USD/CAD H1 Chart
The H1 chart shows that the price after having a bounce at 1.37600 produced a bullish engulfing candle. However, it found its resistance at 1.38000 and consolidated around the level. The last two candles came out as bearish candles. As of writing, the last candle has been bearish as well. If the price breaches the level of 1.37600, the sellers may trigger short entry and drive the price towards the downside with good bearish momentum. The price may find its next support at 1.37000.
The daily, the H4, and the H1, all these three charts look good for the sellers. The pair is about to make a breakout for the intraday sellers. This may create bearish pressure and make the pair have another bearish day. As mentioned, the next daily support offers a lot of space for the sellers, which may create good bearish momentum too.