More downside for the USDCAD as a trend lower continues

Technical Analysis

Approaches May 2019 swing high

The USDCAD continues to trend lower. The pair has a 229 pip trading range so far today. The 22 day averages only 122 pips. There has been little in the way of corrective price action over the last 6 hours of trading. 

The pair is trading to yet another new low for the day.  The price has now moved below the 61.8% of the 2020 trading range at 1.36116.  That is a risk level now for shorts. Stay below is more bearish. 

The next target on the downside, is the swing high from May 2019 at 1.3564.  Below that on the daily is the gap which starts (on the way down) at 1.35169. That was the swing low from March 9th (See the yellow area in the chart above) .

Drilling to the hourly chart below, the pair fell under a lower trend line at 1.3649.  The underside of that broken trend line is now a more conservative risk for shorts. It come in at 1.3645 and moving lower.

Sellers are in control this pair as the trend lower continues into the closing hours of the day.
In a related story which may be giving the loonie a bid, is that hedge fund manager Angelo Gordon is aiming to raise $1.5B to purchase debt of distressed oil and gas companies.
For bank trade ideas, check out eFX Plus

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