01.09.202014:48 Forex Analysis & Reviews: USDCAD bears need to be very cautious as a bounce higher is highly probable

This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

USDCAD has reached our 1.30 target area since our bearish signal at 1.35. Price is now challenging the lower channel boundary. The RSI is at oversold levels and price remains bearish. USDCAD could now start a bounce higher so bears need to be cautious and not too greedy.

Red lines - longer-term bearish channel

Blue lines -short-term bearish channel

USDCAD bearish signal at 1.35 has now fulfilled both of our downside targets. Initially 1.32 and then 1.30. Our stop has been lowered to 1.3230 and now that price has reached 1.30 we prefer to take profits and wait for a bounce. The possibility of a counter trend bounce from current levels makes us believe that we should take our profits. We wait for a bounce towards resistance at 1.31-1.3150.

Back to the list

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.