USD/CAD: the greenback could retreat against the Canadian dollar

USD/CAD tries to pull back from a bearish slant

On the technical side, USD/CAD is trying to pull back after coming back to test a medium-term bearish slant through the highs of December and March. USD/CAD failed to break above this slant on Wednesday and Thursday, and is now trying to break away from it. A close as is would form an ‘engulfing’ candlestick, which would be a signal for a reversal.

The outlook would become bearish to the symbolic threshold at 1.25, close to which it has been used to rebounding since the beginning of the year. This bearish outlook would be invalidated if the week’s high at 1.2880 is breached.

Admission: Sale between $1.28 and $1.2750

Stop: 1.2880

Goal: 1.25

Risk/return ratio: >2

Follow the price action of the USD/CAD pair with IG.

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