USD/CAD is pulling back whilst unfolding a down leg within a long-term range bound market.
USD/CAD is undergoing a correction within an established downtrend. The RSI is oversold and if it exits the zone it could indicate a higher correction is likely unfolding. Both the medium and short-term trends are bearish and given “the trend is your friend” the odds favor more downside. The Relative Strength Index momentum indicator is in the oversold zone, however, and the pair is pulling back.
Such a correction is likely to return to the trendline before rolling over. USD/CAD 4-hour Chart Once the pull back ends the downtrend is likely to take over again, pushing the pair lower. Added bearish confirmation would come from a break below 1.3441. The next bearish target is situated at 1.3380 – the swing lows of October 2023 and January 2024. This is followed by the bottom of the range at 1.3222. A close above 1.
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