The USDCAD pair reversed from its previous uptrend to a downtrend forming a double top pattern in the process. The reversal started on the 19th of March and the downtrend has persisted until now despite hitting support around the 1.4000 – 1.4010 region.
Bouncing around this region, a head and shoulders pattern has formed although yet to be confirmed. Once confirmed, there will most likely be downward movement of the price.
This pattern formation is backed by a moving average crossover to the downside. Furthermore, the 14-period RSI is currently above the 30 (oversold) level. This indicates that there is room for downward movement.
Therefore, it is expected that we will see a downward movement in price during the course of the week
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