The price of USDCAD reversed from an uptrend into a downtrend starting on the 21st of April, 2020. The previous trend hit a resistance around the 1.4236 region.
Since, the price has been declining progressively forming a series of double top patterns at every rally caused by hitting a support zone.
The latest support is the one around the 1.3951 region, which was first reached by this current trend on the 28th of April. The price pulled back formed a double top pattern and is back at the support region.
Provided the price breaks through the current support, which in our opinion is most likely to happen, price will move down onto the next support.
Traders can take sell positions once the price breaks below the support. Take profit levels should be set before the next support. Preferably about 30 pips from the current support.
Our position is further reinforced by moving averages, with the shorter period moving average (lime) being below the longer period moving average (red), indication a downward slope.
The RSI value is also above the 30 level (oversold).
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