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Consideringt the 4H chart depicted above, we can clearly see the bearish Violet & Blue channels indicating that the USD/CAD pair is expected to reach the downside targets in the nearest future.
During last week, the USD/CAD pair was located within the short-term bullish Yellow channel which has been broken today indicating that the bears are about to resume the downside movement of the USD/CAD. However, soon after after this bearish breakdown, the USD/CAD pair is showing the bullish price action depicted in the long 4H Bullish Hammer which seems to be controversial.
On the Hourly chart, the situation is almost the same, the USD/CAD has broken the lower limit of the Yellow channel which is now being retested at 0.9920.
As long as the USD/CAD is trading below 0.9920 ( A Valid SELL Entry ), it is considered as bearish targetting 0.9865 & 0.9835.
SL is to be located above 0.9950.
The material has been provided by Instaforex Company - instaforex.com
