USD/CAD Key Points

• Higher time frame, USD/CAD bearish trend.
• Price going through previous swing low support, confirming the play is to short.
• Inraday retest of previous short term support as resistance on the hourly.

USD/CAD Technical Analysis

Morning team,

Remember the recent USD/CAD daily triangle breakout that we shorted on a retest and made some nice pips? Well fast forward a few weeks to the present and the pair has just reached its previous daily swing low and reacted to the zone.

Take a look at the current USD/CAD daily chart below:

You can click the links above to the previous post in which we were talking about the triangle breakout and subsequent retest of previous support turned resistance, but I've left the markings on this chart for you anyway. What this does, is confirm to us that we're in a strong higher time frame bearish trend and it's shorts that we still want to be looking for.

With price now testing support at the last swing low (marked by the green x), it's interesting to see how price is reacting to the zone. You can see that price definitely views the zone as significant by pausing the bearish momentum that we had been trading with, but at the same time it doesn't look like it's going to be able to stop it.

Now zoom into one of the intraday charts like the USD/CAD hourly that I've focused on below:

I like the fact that now price has gone below the higher time frame support zone, it hasn't been able to break back above and printed a bit of a double top within the zone. As price rejected out of the zone as resistance, I've marked a retest of previous short term support as resistance and a confrmation for shorts.

Use the higher time frame zone to manage your risk around and the risk:reward should still be there for you, even getting in a little late here.

Best of probabilities to you.

Dane.

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