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USD/CAD Testing Recent Support Threatening Bearish Continuation

The 1H chart shows a USD/CAD that is bearish in the short-term, since a little under 2 weeks ago, when it made a new 2014 high at 1.1278. 


(USD/CAD 1H chart, 4/2)

Testing Support:
The 1.10 level supported the fall, and the USD/CAD consolidated throughout this week so far. As we start the 4/2 session however, the pair is back near the 1.10 support with strong bearish price action, threatening to break lower and continue the young downtrend. 

A break below 1.10 opens up 1.0955 and 1.0910 support pivots in the near-term.


(USD/CAD Daily chart, 4/2)


Bullish scenario:
If  there is no break down, and the USD/CAD rebounds back above 1.1045, it will return the focus toward the consolidation high/resistance near 1.1075. Then a break above 1.1080 could revive a prevailing uptrend to retest the 2014 high.

If this bullish scenario develops, traders will also see a falling trendline started 2 weeks ago and may provide resistance there as well to challenge the revival of the uptrend.