💱 USDCAD - Triangle on a bearish trend

22 May 2023

USDCAD is under pressure from the downtrend. The currency pair is forming a range, which is beginning to narrow and form a consolidation

TA on the high timeframe:
1) Downtrend, but at the same time a sideways movement is forming. Price is not updating either lows or highs. Consolidation is forming.
2) Decrease in volatility is a sign of an approaching breakout and increase in volumes.

TA on a low timeframe:
1) A triangle is forming on the main chart between downward resistance (strong area) and upward support
2) Since we have a temporarily strengthening dollar and a bearish trend, we have a better chance of breaking through support and in that case the price may fall to 1.33172
3) But if we break through resistance, a bullish momentum may occur and the price may go towards 1.3665

Key resistance: 1.3520
Key support: 1.34850