Is a Bearish Trend Line Being Formed?
USDCAD made a bearish move followed by a bullish correction. The price had rejection twice at a down trending trend line. At the second rejection, it did not produce any bearish momentum. In fact, the pair is traded around that trend line. If the trend line produces a bearish reversal candle, the sellers may look to go short in the pair and drive the price towards the South. The H4 chart shows that there is enough space for the price to travel towards the downside. It may find its next support around 1.35000.
On the other hand, if the price makes a bullish breakout at the trend line, the buyers may wait for the price to consolidate around the breakout level followed by a bullish reversal candle to go long in the pair. The price may find its next resistance around 1.38500 in case of a bullish breakout.
Considering both charts, it seems that the Bear has an upper hand here. Let us wait and watch what the price does next around the trend line.
On the other hand, if the price makes a bullish breakout at the trend line, the buyers may wait for the price to consolidate around the breakout level followed by a bullish reversal candle to go long in the pair. The price may find its next resistance around 1.38500 in case of a bullish breakout.
Considering both charts, it seems that the Bear has an upper hand here. Let us wait and watch what the price does next around the trend line.
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