Technical analysis on USD/CAD for May 22, 2018

I warned yesterday that a break back inside the cloud and below 1.2830 will open the way for a move towards 1.2770-1.2730. The USD/CAD got rejected by the trend line resistance and reversed below the 4-hour Ichimoku cloud. Price is now again above crucial support.

Blue line - resistance trend line

Yellow rectangle - support area

The USD/CAD pair has short-term resistance at 1.2830 and next and most importantly the 1.2890 level. Support is at 1.2770-1.2730. A break below this support will open the way for a push lower towards 1.26-1.25. Any bounce is considered as a selling opportunity. I'm bearish as long as price is below 1.2930.