USDCAD is extending lower
USDCAD is rejected from 1.3700. Looking at the long-term monthly chart you can see a heavy resistance established in the 1.3700-1.3900 zone. Also, we have a broadening wedge with lower line support at 1.2710 which is the target for this downside rejection from a strong upside resistance zone. Now only a break back above 1.3900 could lead to an invalidation of the downside reversal.
On the weekly chart, we can see an excellent downside continuation with a minor bounce last week, giving us a potentially nice setup for the downside continuation trade. Resistance for bounces is around 1.3500 and that is where stops should be for the short trades. There is a lot of downside space for the short trades.
On the daily chart, we can see a good RR trade opportunity…
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