USDCAD SHORT

This pair has been trading in a nice channel for some time with the odd 'fake-out'. However we are currently sitting at a lower low compared to the most recent trough on the 1H time frame, threatening to drop further.

Based on pattern analysis only, we see the price has retested that previous low (also the support of the channel) and has rejected it, with a move lower. We expect this price to fall from here.

Technical indicators suggest that the pair is overbought on this pullback, further strengthening the case for a move to the downside.

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