Sasha Singh
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USDCAD : Will it Continue to Follow or Reverse the Existing Uptrend ?

USDCAD : 4 Hour Chart

USDCAD seems bearish currently as the pair is now trading within a descending triangle which gives a bearish signal. So accordingly the pair should break below the support at 1.0902. We can see that the pair formed a double top pattern also on the 4 hour chart which itself gives a bearish signal. The downbeat US Retail sales data forced the pair extending losses. If continues to decline the next nearest support the pair may find is at 1.0869.

USDCAD : Daily Chart

However if looking at the daily chart, the pair seems supported by the rising support trend line. Currently the pair is testing the support at 1.0903 but it might decline below this level as the 100 day SMA and 200 day SMA are contracting towards each other and the 100 day SMA might cross below the 200 day SMA signaling a downtrend continuation. The pair will reverse the uptrend to downtrend when it will decline below the rising support trend line. If it continues to consolidate within the ascending triangle pattern the pair might surge above the resistance at 1.0989 continuing the uptrend. So the bearish trend on the 4 hour chart seems to be for the short term.