USDCAD - From consolidation to downward distribution

Jul 14

USDCAD is forming a reversal pattern following its recent strong rally. The market appears to be transitioning from a consolidation phase into a distribution phase



The U.S. dollar has entered a period of consolidation, while the Canadian dollar is beginning to strengthen, putting additional pressure on the pair.
After the strong advance, USDCAD moved into a 1.4150–1.4250 trading range. Instead of continuing higher, price is now showing signs of a reversal. Buyer participation may lead to a distribution phase, with the market potentially moving lower to fill the existing fair value gap (FVG)

Resistance levels: 1.4150, 1.4177
Support levels: 1.4092, 1.4024

Technically, after breaking below the consolidation support, bears are attempting to keep the price below the 1.4150 range boundary. As long as this level remains under sellers' control, the market may continue its decline toward 1.4092 and 1.4024

Best regards,
R. Linda

Jul 14

Trade active

Jul 15

Trade closed: target reached