USDCAD Trendline Break and Retest
The USD/CAD pair recently witnessed a significant technical development as it broke below a key ascending trendline, marking the end of the preceding bullish momentum. Following the trendline breach, the price experienced a notable decline, eventually reaching a crucial support level.
In a subsequent move, the pair retraced to revisit the broken trendline, now acting as resistance, and displayed a clear rejection, validating the newfound resistance. This rejection was followed by a renewed downward movement, suggesting a potential continuation of the bearish trend.
The current trade idea entails taking a short position on USD/CAD with the target set at 1.36350.
Closely monitor the price action and employ risk management to mitigate potential losses.
In a subsequent move, the pair retraced to revisit the broken trendline, now acting as resistance, and displayed a clear rejection, validating the newfound resistance. This rejection was followed by a renewed downward movement, suggesting a potential continuation of the bearish trend.
The current trade idea entails taking a short position on USD/CAD with the target set at 1.36350.
Closely monitor the price action and employ risk management to mitigate potential losses.
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