06.11.202018:34 Forex Analysis & Reviews: USDCAD challenges August lows

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USDCAD is trading just above 1.30 after having broken a triangle pattern to the downside. Price has reversed strongly this week after reaching as high as 1.33. Price is now just above 1.30 and as long as price continues to trade below 1.3150 I expect bears to remain in control.

Red line -upper triangle boundary

Green line - lower triangle boundary

USDCAD is now challenging the August lows. Breaking below 1.30 will open the way for a move lower towards 1.28. However bears should not get overconfident because the RSI provides us with some bullish warnings as the price of the RSI is not making new lower lows. This is not a bullish reversal signal but just a warning. As long as price continues to make lower lows and lower highs trend remains bearish. The key resistance level to watch is 1.3320.

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