FX.co ★ USDCAD at major short-term support area

USDCAD as we expected by our previous analysis has pulled back inside our target area of 1.3250-1.33. However price is now breaking below a key upward sloping trend line support and unless we see soon an upward reversal, then this break down could unfold into a bigger pull back.

Green rectangle - pull back target since 1.34

USDCAD is trading below the red support trend line. This is not a good sign for bulls. However price has one more support at 1.3230 that needs to hold in order for bulls to keep hoping for a move higher towards 1.35. If traders do not see price reverse to the upside in the next 24 hours, we should expect more downside to come and 1.3230 to be challenged. 1.3320 is short-term resistance and if bulls manage to recapture this level, then they will have more hopes for a continued move higher.