Despite the NFP news today, USDCAD has been in a bearish trend since the range bound market was being triggered. Market has been forming minor lower lows and lower highs and has the potential to break through this current support priced at 1.35145. If market breaks this, it will head towards the lower support level. 

The ascending trendline has been broken out for sells. The market has the potential to retest the trendline where our short orders are pending. 

The retracement level is in confluence with the resistance level. This confluence falls at the value of 50% of the retracement level. 

The EMA 50 is bearish as the candles started to break the EMA 50 towards the downside. That being said, it can fall further below as the EMA 50 is steep curved for the bearish momentum.

RSI is at 36. This is the region of bearish region where the market has to hop back towards the neutralized levels in order for the market to make another impulse short entried. 

Trendline retest on USDCAD

Nov 04 2022