USDCAD Weekly Technical Outlook
The bearish tone maintained on the monthly time frame is still very much alive.
On the weekly time frame, price action has been largely ambivalent in the past two weeks. Currently, price action is in a flip zone and last week the price action formed an indecision candlestick at the 61.8 Fib of the most recent swing high, although the technicals favour the bears.
On the daily time frame, price action is operating in a descending channel (navy colour). Two major price waves have been formed within the channel, with the the second having a bullish disposition. The most recent price action is favorably under the control of bears and we may expect the third price wave to dispose southward, targeting the proximal channel line. But along the way we may see barriers around the monthy central pivot (in the 1.22530 area) and around the 1.22150 area.
On the H4 time frame, price action has been operating in an ascending channel (magenta colour) for a long while, this is apparently the second price wave in the descending channel seen on the D1 time frame. This ascending channel has been broken by price action last week Tuesday. The last session on last week Friday resulted in a bearish candlestick and is likely to be the beginning of the third leg down, to align with the major technical disposition on the monthly, weekly and daily time frames. Thus, we may expect a bearish continuation in the days ahead. Before then, we may see a retracement northward; the area between 1.25500 and 1.25900 (bound by red coloured horizontal lines) is likely to be attractive to bulls as a target. Thereafter, we are likely to see a bearish turnaround.
I may be wrong. Trade safe and prosper.