USDCAD looks for more downside in the short to medium term

Last week, we predicted the dollar cad to find short to medium term momentum to the downside, price however fulfilled the bull case that we drew out to liquidate two areas where shorts were placed back in April. We think price needs to liquidate some near time longs that were placed before it can find more upside.

BEAR CASE
Price to find it's way down to the 1.23 level before finding more upside

BULL CASE
If bulls finds the much needed conviction, they could push price to the 1.29 level before we see any retrace to the downside.