Possible Bear flag in USDCAD

Updated

After the sharp move down in the beginning of the year, USDCAD broke out of the trend and created an upward channel. It has recently tested the 50% Fib and sellers responded immediately as seen by the purple candle. Pattern looks like a bear flag although we are still miles away from confirming it. A break of the lower bound of the channel is needed to confirm it

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Hit the Mara to the tick (purple line) and reversed

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Pardon me I meant to the pip. Used to futures analysis

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Entering an area of support ( cluster of highs). Next support comes in at 1.33 area (38.2% Fib) and critical support around 1.3280 area (previous support, Mara, and swing lows)

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Bounced off support as previously discussed and near swing highs. Watch out for a stop run above previous swing highs at 1.3589

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USDCAD needs a close below the small trendline for a move lower in our opinion

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Broke inside day lows

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Breaking through area of support. A close below is needed for a sustained move

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USDCAD approaching lower bound of the channel

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Pair testing the trendline and lower bound of the channel

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Pair breaking through the lower bound

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