USDCAD will it resume its daily down trend?

21 Jan

**Monthly Chart (Directional Bias = Sideway)**

After the relative double bottom of the year 2011, USDCAD's long-term trend is bullish. The long-term directional bias is moving into a large range between 1.46500 and 1.20220 levels from Jan 2016.

Last month's candle closed bearish after moving lower from the monthly MC (Order Block) near the supply zone. This indicates a continuation move to test the previous low at around 1.31000 (round number). While the price enters into consolidation after its previous swing high of Oct 2022.

The monthly candle opened from the low and started moving higher. Currently, The market is in a Sideway movement structure as per the monthly chart. The price bulled back from 1.3200 level with equal lows which might be the target for the upcoming weeks and months. It tested the demand zone and started moving higher at the opening of the monthly candle earlier this month. However, it remains within the range of the monthly structure

- There is a manipulation candle that remains valid on the monthly chart - Nov 2023
- The liquidity pool remains on top and the bottom of this monthly sideway structure

**Weekly Chart (Big Range)**

- The current structure on the weekly chart is pulling back after testing the manipulation candle and liquidity pool last week and now we are waiting for further confirmation for the price to go lower.
- The price had a high test bar or Ring high pattern weekly candle. It is trending down at least to 1.31000 level
- The potential target is around 1.3150 at least.

Daily Chart (Bearish)
- The price had a counter-trend move higher after it tested the imbalance demand zone for around 300 pips moves just to test the previous MC candle.
- It is pullback on daily and will start trending lower as this is a corrective move for the last three weeks.