USDCAD has been struggling for a while at the key weekly resistance trendline. If you take a look at the weekly chart you can see that the market could not close above the trendline resistance.
This gives us an idea that the market cannot sustain buying at this point. Moving to our 4hr timeframe we can see a minor resistance level was broken and close below around the 1.3120 level.
We have highlighted this level with arrows and was a deciding factor in taking a short position here making sure our stops are above highs to protect us from market fluctuations.
Technically we have a minor support sitting down at the 1.3050 which if price breaks and closes below we can look for continuation trades short with key support down at the key support at 1.2900.
This gives us an idea that the market cannot sustain buying at this point. Moving to our 4hr timeframe we can see a minor resistance level was broken and close below around the 1.3120 level.
We have highlighted this level with arrows and was a deciding factor in taking a short position here making sure our stops are above highs to protect us from market fluctuations.
Technically we have a minor support sitting down at the 1.3050 which if price breaks and closes below we can look for continuation trades short with key support down at the key support at 1.2900.