USDCAD - SUPPORT UNDER PRESSURE, WILL THE DOWNTREND CONTINUE?

May 5

Symbol - USDCAD

CMP - 1.3803

USDCAD continues to test the support within its established trading range amidst a broader global downtrend. While the currency pair remains confined within this range, the pressure on the support persists. The market’s response to false breakouts appears to be weakening, and the price action continues to challenge the 1.3780 level, thereby increasing the likelihood of a further decline.

The US Dollar is showing signs of retreating from resistance and is beginning to decline, exerting a corresponding effect on USDCAD. Should the currency pair breach the 1.3780 level and establish a sustained close below it, this could signal the continuation of the prevailing trend following a consolidation phase.

Resistance Levels: 1.3810, 1.3830
Support Levels: 1.3780, 1.3740

The primary focus remains on the lower boundary of the trading range at 1.3780, The role of this range is to provide consolidation amidst a broader downtrend. Therefore, a decisive breakout below support would likely trigger the initiation of the distribution phase.

May 6

Trade active

CMP 1.3838

Short position active.

May 7

Note

CMP 1.3760

Short position +78 pips in profit, Holding with trailing SL.

7 days ago

Trade closed manually

Closed with trailing SL at 1.3820, +18 pips in profit.