USDCAD is testing the confluence of a downside support
USDCAD is testing a strong confluence of downside support 1.2850-1.2900 zone as you can see on the weekly chart. A confirmed rejection and continuation lower are giving us a higher probability of the short trade entries to target extension downside. A reversal here and a break above 1.2900 is now required for the upside reversal. The overall medium-term is downtrend but we need to see a confirmation break below 1.2700 for the downside extension. Falling trend lines and horizontal downside support are indicating that the pair will stay in the downtrend as long as it is below 1.3000.
Note – We are inclined to long trade entries with the stop loss below 24.
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