The loonie has been losing ground against the U.S. Dollar as the 0.9522 low seems to have stirred awake USD/CAD bulls. Crude oil has stagnated below 110/bbl and this could be fueling some of the loonie pessimism but the case for bullish greenback cannot be made here and that’s why I see a push lower…resuming the overall downtrend.
The Directional Bias of the USD/CAD is still BEARISH therefore positioning my entries at resistance levels or as support fails is a higher percentage entry in my opinion.
The Channel Up pattern on the 240-minute chart is wide and short enough to also have Bear Flag characteristics which means this could be setting up a reversal. Remember that essentially a Channel or Flag is simply parallel trendlines so we’re looking for how price action behaves at these levels.