Outlook on USDCAD: Bearish play seen

On the daily time frame, we are seeing bearish order flow and prices are holding below a key resistance area with further downside seen. On the H4 time frame, supply chain is being formed and respected as prices mitigate the extreme of the previous moves before moving to the downside. With prices currently testing the H4 supply zone at 1.27745, in line with the 100% Fibonacci extension, it could present an opportunity to play the drop the support target at 1.25597. Stochastic is testing resistance as well where we could see a reversal below this level, supporting our bearish bias.