USD/CAD 4H Chart: Descending Triangle

Triangles are classical continuation patterns, meaning the confirmation of the observed cross to the downside looks reliable and historically proved. For now we are looking for a deeper correction lower in the direction of 1.34, the first weekly support line. Next two levels of demand are guarding the 1.33 mark, the monthly S1 at 1.3316 from above and weekly S2 at 1.3272 from below. Bearish success here should imply a drop in the direction of 1.31 (monthly S2) and the five-month low at 1.2825 in the long run. Only the latter is expected to provide sufficient demand for the US currency, which may then commence a fresh rebound. Meanwhile, SWFX market is divided—52% bullish and 48% bearish.