FX.co ★ USDCAD breaks below 1.28

USDCAD has broken below our target area of 1.30-1.29 as expected when price got rejected back at 1.3150. Price slowed down yesterday around 1.2950-1.2980, but eventually bulls were unable to stop the power of selling by bears. Price has broken below key long-term support levels and looking at longer-term charts we only find horizontal support levels around 1.26.

USDCAD is in a clear weekly bearish trend making lower lows and lower highs. With price below 1.28 we can safely lower our stops to 1.30 from 1.31 and if next week price moves towards 1.26, we can lower stop to 1.2950. The weekly RSI is far from oversold levels. There will be price bounces towards resistance around 1.29, but I expect to see more selling to come and push price even lower towards 1.26.