USD/CAD Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- Bearish Engulfing Candle: Formed near trendline resistance, signaling renewed downside interest.
- Downtrend Intact: Price remains beneath both the descending trendline and 50-SMA.
- Weak Momentum: RSI at 36 confirms bearish control, with more room for downside.
USD/CAD remains under sustained bearish pressure, trading below a descending trendline and the 50-period SMA, currently at 1.3851. The pair is forming lower highs and lower lows, reinforcing the downtrend.
A fresh rejection from the 1.3850–1.3863 supply zone suggests sellers remain in control, and momentum favors a continuation lower if 1.3819 is breached.
A bearish engulfing candlestick appeared near the trendline resistance during the latest rejection, signaling increased selling interest at higher levels.
This pattern adds confluence to the bearish outlook, particularly as price action remains beneath both the 50-SMA and the trendline.
The RSI stands at 36 and is sloping lower, showing weakening bullish attempts and renewed bearish momentum.
The entry trigger sits just below 1.3819, with the next support at 1.3742, followed by 1.3704. A close above 1.3863 would invalidate this setup and potentially shift sentiment in the short term.
USD/CAD - Trade Ideas
Entry Price – Sell Below 1.38197
Take Profit – 1.37424
Stop Loss – 1.38635
Risk to Reward – 1: 1.7
Profit & Loss Per Standard Lot = +$773/ -$438
Profit & Loss Per Mini Lot = +$77/ -$43
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