- USD/CAD bulls are looking for the mean reversion target of 50% bearish momentum.
- Bears look for support below 1.3300, targeting 1.3250/20 and then 1.3200/1.3150.
The USD/CAD has deflated on Tuesday, as preliminary national data showed the economy grew at a slightly higher rate than expected by the Bank of Canada in the fourth quarter. This brings us to the Federal Reserve meeting on Wednesday with the technical indicators well entrenched for a break down if the market gets what it is looking for from the meeting.
Illustrated below is a short-term bearish outlook to 1.3150 based on the daily and 4-hour charts:
USD/CAD daily chart
USD/CAD has started to work its way towards the support trend line of the up cycle breaking bearish structures along the way.
It was unable to stay above short-term downside rolling resistance, as illustrated above, which keeps the focus on the downside, for now.
USD/CAD H4 Chart
Price could stall here and correct towards 50% mean reversion bearish momentum before finding resistance again and falling back to test supports below 1.3300, targeting 1.3250/20 then 1.3200/1.3150 .
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.