Breakout alert!

USD/CAD is buying and selling juuust below a serious assist stage!

Will this imply extra losses for USD/CAD?

USD/CAD Day by day Chart by TV

As you may see, USD/CAD is already buying and selling under the 1.3300 psychological stage that has been supporting the pair since November 2022.

Remember the fact that the pair had already damaged under a key pattern line assist a few months again.

What makes the day by day chart much more fascinating in the present day is that its 100 SMA is displaying a bearish SMA crossover in opposition to the longer-term 200 SMA.

Are we a reversal within the making?

Earlier than you promote USD/CAD like there’s no tomorrow, it’s best to be aware that Stochastic is already displaying an “oversold” sign.

Not solely that, however the breakout candle remains to be not too removed from the damaged vary assist zone, which signifies that we might nonetheless see USD/CAD returning to its longer-term vary.

Promoting at present ranges or on the affirmation of the subsequent candlesticks would make for a superb play when you’re satisfied that USD is about to take extra hits in opposition to CAD.

The 1.3060 earlier excessive is an efficient preliminary goal, however you can even eye the 1.2900 ranges if there’s sufficient momentum.

Don’t imagine that the greenback might lose much more pips in opposition to the Loonie?

You may as well watch for USD/CAD to return to its vary earlier than focusing on earlier inflection factors like 1.3450 or 1.3640.