23.07.202012:22 Forex Analysis & Reviews: USD/CAD Down Channel Still Intact!

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USD/CAD pair is trading at 1.3372, right below the 1.3375 downside obstacle, static support, a valid breakdown, stabilization, below it will validate a further drop towards new lows. The price is trapped within a major descending channel, so the outlook is bearish, USD/CAD could drop deeper as long as it stays within this major chart pattern.

The 1.3375 represents a critical support level, you can see that USD/CAD has reached this level in the past and it has bounced back, so another lower low, bottom, below this static support will activate a potential sharp drop, a sell-off.

USD/CAD Trading Tips

The selling pressure is high as long as USD/CAD is traded, located, below the downtrend line. A drop below the 1.3375 will attract more sellers, which will drag the pair way lower, towards the 1.3194 static support, downside obstacle.

A selling signal could be activated if USD/CAD hits the 1.3350 level, the first downside target could be at the 1.3194 level, while the major downside target remains at the downside line of the descending channel.

A great buying signal will appear only if USD/CAD registers a valid breakout above the downtrend line of the descending channel.

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