USDCAD breaks the support – Analysis - 19-10-2017

The USDCAD pair broke the key support 1.2470 and closed the daily candlestick below it, to activate the bearish trend scenario on the intraday and short term basis, and by taking a deeper look at the chart, we find that the price draws technical formation that its confirmation line located at 1.2432, which means that breaking this level will add more negative pressure and confirms rallying towards the bearish wave targets that start at 1.2300 and extend to reach the previously recorded top at 1.2061.

Therefore, the bearish trend will be expected for today, noting that rallying to breach 1.2550 will stop the negative overview and lead the price to return to the correctional bullish track again.

Expected trading range for today is between 1.2370 support and 1.2550 resistance.

Expected trend for today: Bearish