The USDCAD pair in its hourly chart shows the test of the 1.4375 level as short-term support, the three-times touch realized on the current trading week makes us suspect that the Loonie could see more drops soon.
For the short-term, we expect a limited bounce to 1.4426 from where the price could find fresh sellers waiting to activate their short positions with a potential profit target at 1,4156.
On the other hand, the RSI oscillator that moves below level 40 gives us the clue of the bearish bias, which supports our sell-side outlook.
The invalidation level of our bearish scenario locates at 1.4559.
Trading Plan Summary
- Entry Level: 1.4426
- Protective Stop: 1.4559
- Profit Target: 1.4156
- Risk/Reward Ratio: 2.02
- Position Size: 0.01 lot per $1,000 in trading account.