USDCAD has been in a bearish spiral since few days. This tops up to the fact that the market is currently at the resistance level and has the potential to continue moving down from this level. The price is at 1.2865. Once this price is tapped, the lower low and lower high bearish structure patterns will be formed. 

The bearish pattern is formed as a bearish pennant but the braekout buy has been triggered, but the market failed to move past the resistance in order to turn the structure into the bullish scenario. Therefore, we will wait for the market to drop and induce breakout sell for a further confirmation.

The golden retracement area is in confluence with the resistance level. The 75-78.6% acts as a catalyst for the market to mark down.

EMA 50 is in a bearish sentiment trend and has a linear curve. This curve would be an act of retest and has the fact to continue moving towards the bearish side. 

RSI has a minor divergence for the bearish side and resides at the 54 level which is the bullish region. Once market dips down the neutral level of 50, the market will enter into the bearish side and align with our technical factors. 

USDCAD bearish

Aug 04 2022

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