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Trend line

30.08.202116:02 Forex Analysis & Reviews: USDCAD breaks key support trend line.

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USDCAD has been trading in a bullish trend since May but recent high above 1.29 and its reversal has most probably marked an important top and the start of a deep pull back. Price has finally broken the upward sloping red support trend line that was respected many times before.

Red line- support trend line

USDCAD is trading below 1.26 for now and if price continues to trade below 1.26, we will have a confirmed break down of the trend line and our 2nd sell signal after the reversal candlestick pattern we mentioned back in August 20th. Back then USDCAD made a candlestick pattern with a long upper shadow (tail) confirming bullish weakness and strength from bears. The following daily candlesticks confirmed the bearish reversal and pull back towards the red trend line.

Today we see the first signs of breaching the trend line support. 1.2577 is an important low and breaking below it will confirm that price is in a corrective path and should move even lower towards the 1.2475-1.24 area.

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