USD/CAD Further Drop Expected!

USD/CAD is trapped within a down channel, below the major downtrend line, so the outlook is bearish, the price could drop deeper in the upcoming period. You can see that the price has tested and retested the downtrend line confirming it as strong dynamic resistance.

The pair is expected to reach fresh new lows as long as it stays under the downtrend line. USD/CAD has made another lower low, has dropped below the former peak low confirming that we could sell this pair again.

You can sell USD/CAD from here and you can place, hide, your Stop Loss order right above the 1.3357 level, the next downside target is seen around the 1.3020 level. Actually, the major downside target remains at the downside line of the descending channel.