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USD/CAD Price Analysis: Bears are testing bullish commitments at trend line support

  • USD/CAD bulls are giving ground to bears.
  • USD/CAD bears are breaking the trend line support.

USD/CAD has ranged from a low of 1.3484 to a high of 1.3548 on the day. Bears are in the market and trying to break the uptrend that has been building since early May. Below are two scenarios, bullish and bearish, on the hourly chart.

1 hour chart

In the bullish scenario, the price tests the resistance of the counter-trend line and the neckline of the M formation. If the bears get fully involved, then we could see the ingredients of a continuation lower at 1.3470.

A bullish scenario would see a break of resistance and a move to the shorts from the peak formation, returning to the front of the uptrend line.

Source: Fx Street

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