USD/CAD Price Analysis: Bears lurking with eyes on a deeper correction

USD/CAD burst through an hourly trendline resistance on Friday and is now consolidating in a phase of price discovery. The following illustrates the m  |  08/08/2022 04:04
  • The daily chart's W-formation is a bearish feature.
  • The hourly chart's price action is coiling for a breakout.

USD/CAD burst through an hourly trendline resistance on Friday and is now consolidating in a phase of price discovery. The following illustrates the market structure and prospects of a deeper retracement for the coming sessions:

As illustrated, the price has burst through the trendline resistance and the price is coiling between support and resistance. A break to the downside opens the probability of a move into the area of price imbalance. 1.2880 is a potentially key structure that if broken may give way to a deeper correction towards 1.2820 and 1.2770. On the other hand, considering the price has already corrected 61.8% of the impulse, should the bulls commit, an upside breakout and extension could be around the corner. 

USD/CAD daily chart

The daily chart's W-formation is a bearish feature with price anticipated to correct the daily bullish impulse towards the neckline. 

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