USD/CAD Threatening Bearish Continuation

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Consolidation: USD/CAD has been consolidating since May. The 4H chart shows that since finding support at 1.0814, it has been trading sideways, with resistance at 1.0960. In June USD/CADhas been bearish, and after a couple of false bullish breaks, it is testing the May and consolidation low, as the 6/19 US session begins.
usdcad 6/19 2014
(USD/CAD 4H Chart 6/19)
Bearish Continuation Threat: The prevailing trend has been bearish in USD/CAD, since finding the 2014-high at 1.1278. With price cracking the 1.0814 low, traders are signaling bearish continuation for the US Dollar – Loonie. Note that this latest swing came on the back of the FOMC statement and press conference, and on the back of broad USD-weakness during the 6/18 session.
usdcad daily chart 6/19
(USD/CAD daily chart 6/19)
Bearish Targets: At this point, as long as price holds under 1.0890/1.09, central pivot area of the consolidation range, then the bias is bearish. To the downside, the next support could be at the 200-day SMA, which is around 1.0780 at the moment. Below that, the next key levels are the 1.0737 previous resistance pivot, and 1.0560 support/resistance pivot.

To contact the reporter of this story, email Fan Yang at fan@forexminute.com
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Fan Yang has been a professional forex trader and analyst since 2007. He specializes in technical analysis and has a Chartered Market Technician designation since 2011. He was the chief technical strategist at CMSFX He was also the founder and chief currency strategist at FXTimes Over the years, Fan has not only been a trader and analyst but also an educator. As a proponent of both technical and fundamental analysis in trading, Fan advocates simplicity and discipline as key factors in making trading decisions when faced with so many "clues" and "signals". Currently Fan Yang is the chief currency analyst and webinar instructor at forexminute.com.