The USDCAD draws negative pattern – Analysis - 05-07-2021

The USDCAD pair faced strong negative pressure in the previous sessions to break 1.2410 and press on 1.2330 level, as it closed the daily candlestick below it, while on the other hand, we notice that the price forms double top pattern that its signs appear on the chart, which means that the price will face potential additional negative pressure on the intraday and short term basis.

Therefore, we expect the continuation of the bearish bias in the upcoming sessions, and the targets begin at 1.2260 and extend to 1.2164, taking into consideration that breaching 1.2410 will stop the current negative pressure and lead the price to achieve new gains.

The expected trading range for today is between 1.2270 support and 1.2400 resistance.

The expected trend for today: Bearish