Technical analysis of USDCAD for August 22, 2016

Source: Forex Analysis

USD/CAD is testing short-term resistance at 1.2920 where we find the 38% Fibonacci retracement of the last decline from 1.32. A rejection here will open the way for a new low towards 1.26.

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Blue lines – long-term triangle

USDCAD is back testing the broken long-term triangle pattern and the Kumo (cloud) resistance. Price is now challenging the 38% Fibonacci retracement. I expect a reversal from this level to new lows.

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On a daily basis price has also broken below the daily cloud support and is now back testing the breakout area. I expect price to get rejected and move to a new lower low towards 1.27-1.26.The material has been provided by InstaForex Company – www.instaforex.com