USDCAD downside extension continuation
USDCAD is breaking below the strong downside resistance of 1.2700 for a continuation lower after the rejection from 1.2850. A confirmed break below this resistance is leading to a continuation lower to the 1.2460. A reversal here and a break above 1.2850 is now required to invalidate downside extension. The overall medium-term is downtrend but we need this break below 1.2700 confirmed for a high probability downside extension. As long as the USDCAD is below 1.2850 there is a high probability that it will have a downside extension targeting 1.2460.
Note – We are inclined to short trade entries with the stop loss above 1.2750 upon a confirmed break below 1.2700.
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