Chart of the Day – USDCAD – Short Term Price Weakness

The long term bias on the USDCAD is to the upside. Since the 3rd January 2020, it has created three bull flags which we’ve seen price move higher. The last bull flag completion target was 1.34476. Once price hit this level it reversed and created an inverted hammer. The subsequent session saw price move lower significantly. With today’s price retracing the initial decline, this is the perfect opportunity to look for shorts. Price is also retesting the higher time frame Fibonacci levels and the downward sloping trendline drawn from the 31st December 2018 at 1.36648 and projected forward. As price was unable to maintain the close above it, this gives the expectation that there is short term weakness in the USDCAD.