USD/CAD produced two consecutive bearish daily candles. Yesterday’s candle came out as a bearish Marubozu candle. The price has some space to travel on the daily chart. Thus, intraday sellers may keep their eyes in the pair to go short. Two major intraday charts look good for the sellers as well. Thus, the pair may produce another bearish candle today. Let us now have a look at three vital charts.
Chart 1 USD/CAD Daily Chart
The chart shows that the price consolidated around the level of 1.36250. It produced two bearish engulfing candles on two occasions, but the price did not head towards the South. At the last rejection, the price created another bearish engulfing candle followed by another bearish Marubozu candle. The pair is trading below the previous swing low. Thus, sellers may wait to go short in the pair below yesterday’s lowest low. The price may find its next support around 1.33100.
Chart 2 USD/CAD H4 Chart
The price made a strong bearish move and made a breakout at the level of 1.35000. Then, the price continued its bearish move and found its support around 1.34250. It has been in consolidation. If the price makes a breakout, the sellers may go short below the level of 1.34250. The price may find its next support around the level of 1.33100. If the price makes a bullish breakout at 1.34600, the price may head towards the North and find its resistance around 1.35000. If the price goes towards the level of 1.35000, it may roam around the level for a while before making a breakout, which is going to be a crucial breakout to determine its next direction.
Chart 1 USD/CAD H1 Chart
The price made a long bearish move and found its support at 1.34250. Upon producing a bullish inside bar, the price headed towards the North and consolidated around the level of 1.34600. The price has been bearish, but it has not been heading towards the South with good momentum. The sellers may go short below 1.34250 and drive the price towards the level of 1.33550. In case of a bullish breakout at the level of 1.34600, the price may find its next resistance around 1.35000. Since the H4 and the daily chart are bearish biased, the H1 sellers may add more short positions, which may end up creating volatility in the chart.
The daily, the H4, and the H1, all these three charts are bearish biased. Thus, the pair may end up having another bearish day today.