Here’s why I will look to trading USDCAD southward this week.
On the weeky time frame,since May 2017, price action has been under the control of sellers. Presently, price action is within an S/R area and may target 1.22310. The technicals on the weekly time frame seem to support further southward move before any bullish operation can be expected, moreso as a consolidation pattern has formed between the 1.22310 area and the 1.37050 area.
On the H4 time frame, price action is respecting an inner descending trendline (magenta colour) from June 2017 after moving below an outer descending trendline (navy colour). The most recent price action was a strong bearish move after a period of consolidation. Sellers may be able to sell further southward before buyers are attracted. Thus, a retracement may not be immediate. Any retracement, however, is likely to be in an area of value, much likely leading to a retest of the inner descending trendline.
I may be wrong. Trade safe and prosper.