USDCAD rejected at resistance

USDCAD is still inside the medium-term downward sloping wedge pattern. Price got rejected this week at the upper wedge boundary and resistance at 1.26 and is now trading at 1.2532. Price is vulnerable to a move towards the lower wedge boundary as long as price trades below 1.26-1.2650.

Price has formed another lower high. Price is in a bearish trend as it continues making lower lows and lower highs. In order for trend to change, bulls need to push price above the red resistance trend line and upper wedge boundary. Until then price is vulnerable to another move towards the blue trend line towards 1.23-1.22. Short-term support is at 1.2470. Breaking below this level will open the way for a move towards 1.22-1.23. While price is trading near the upper wedge boundary we consider it as a selling opportunity because the trend change level is very close and so is our risk.