USDCAD D1 in key area

USD/CAD has fallen sharply, but looking at the wider technical pattern, it can be seen that they did not cause any major damage to the upward trend. Currently supply has not even corrected the last part of the trend, which is growth in this year’s bullish channel.

Price oscillates in the key area of the lower edge of the channel. On one hand, the prolonged absence of stronger upward impulses can tilt the victory bears, bearing in mind that there is important resistance set by three previous highs. Breaking the bottom of the canal would be a signal for further declines to area of support.

We should not diminish the chance of continuation of the upward trend. What’s more, a number of fundamental factors will play a key role in the near future. Observing H4 chart, you should have in mind local resistance, which overlaps with wider area from Daily chart. Breaching 1.3540 can activate a double bottom formation and expand the rebound from the lower edge of the channel. On the other hand, breaking out from channel and the descending below the May’s low should mean further declines.