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.
(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.
(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.
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