Currency Analyst since 2010

USD/CAD looks bearish (June 10)

By Felipe Erazo 

The loonie is currently conducting corrective movements in favor of the bullish trend that is dominating the H4 chart. Now the USD/CAD is trying to consolidate below the 38.2 Fibo (1.0907) level, then fall to the support level 1.0890, which is a Fibonacci level.

However, the USD/CAD is not showing patterns that could indicate completion of the retracement, so this pair could fall to the level of 1.0874 (61.8 Fibo level). No divergence is shown in the CCI indicator and GANN line remains above the current price (bearish bias), so the USD/CAD could continue falling.

Chart. H4 USD/CAD

Trading recommendation: Wait for a fall until the 1.0874 level, before place buy orders in the USD/CAD. Anyway, if this pair does a breakout in that level, the bearish trend could continue for more days and we have to re-draw our Fibonacci retracements. Note that daily chart is showing a double bottom pattern.

Chart. Daily USD/CAD

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