USDCAD has broken down and out of the trading range it has been for the last few sessions. As we explained in a previous post, USDCAD was trading mostly sideways and traders would better be patient and see the direction of the break out.
Black lines - trading range
USDCAD has provided us with a bearish signal as price has broken the support zone at 1.35.Since the recent high around 1.37 USDCAD is forming lower lows and lower highs. The latest high is around 1.3585-1.36 and as long as price is below this level we remain bearish. Price has now broken down the trading range and we expect to see more selling pressures against the Dollar.