USDCAD gave us a bearish signal when price broke down and out of the sideways trading range it was in. When price broke below 1.35 we called for a bearish signal. Now price is at 1.3420 after making a new low at 1.3350.
Black lines - trading range
USDCAD traders can now lower their stops to the entry level of 1.35 for a risk free trade. Trend remains bearish as price is making lower lows and lower highs. We continue to expect price to move lower still as long as we do not break above 1.35 again. Next downside target is at 1.32.